200 units power cap for FCA exemption

KARACHI: Following the announcement of the relief package by Prime Minister Shehbaz Sharif, Federal Minister for Power Khurram Dastgir Khan explained on Wednesday that only the households that consume electricity up to 200 units will get an exemption from the Fuel Charges Adjustment (FCA). The power minister revealed that 17 million people were being provided relief amounting to Rs22 billion on account of the FCA.

Additional amounts which power consumers paid on account of June’s FCA was because of “Azaab-e-Imrani (the calamity of Imran),” said Khurram Dastgir Khan at a press conference held at the K-Electric office.

The power minister also announced that restructuring of the National Electric Power Regulatory Authority (Nepra) was underway. He termed Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan’s claims on excessive power capacity incorrect. He said that from 2018 until 2022, Khan’s government did not produce any power from cheaper alternative power sources such as wind, solar, nuclear and Thar coal. Not a single megawatt, he said, from these resources was added to the national grid.

Due to incompetence of Imran Khan’s government, he said, whenever there’s power shortfall, Pakistan has to rely on furnace oil and diesel, which are very expensive. In Imran Khan’s tenure, he said, there was no progress on any alternative power generation project. A nuclear plant was supposed to be constructed at Chasma V but during PTI’s government there was no progress on that.

The only progress, he pointed out, was made at the power generation plants of former ministers of Imran Khan’s cabinet, which used to run on furnace oil. “Our challenge is power supply – cheap power supply,” he stressed. He said that Shanghai Thar Coal of 1,320 megawatt couldn’t see any progress because of Imran Khan’s policies against CPEC.

He went on to explain that power consumers across the country had received increased electricity bills due to the fuel surcharge of June, which was added in the bills of July. The consumers had utilised lesser electricity during July as compared to June, however, they received higher bills which included the surcharge of June.

He announced that the fuel surcharge, added in the bills of July, had been abolished for the consumers of below 200 units. Those who had paid their bills would be given relief in their power bills in next month, he explained. As for those who haven’t paid would get their revised bills. Besides, the fuel surcharge for the agricultural consumers had also been abolished.

The minister announced that the fixed tax imposed on commercial meters would also be abolished from October. He said the incumbent government focused on the alternative energy and soon power production would start from Thar coal.

Dastagir said that efforts were also underway to modernise the power distribution companies under the vision of prime minister. He said the companies had been asked to ensure rapid installation of metres, resolution of complaints of consumers and prevention of power thefts on modern lines.

The minister said Imran Khan continuously lied to the nation that there wasn’t any shortfall of electricity. In fact, he clarified, power production was much lesser than its demand. He said that the country’s power supply was dependent on outdated plants running on expensive furnace oil.

Khurram said, “We have no intention to blame any power distribution companies, but the objective is to provide the consumers uninterrupted power supply at low rates.” Under the instructions of Prime Minister Shehbaz Sharif, major relief measures have been taken for the consumers, he said, and added that protests were organised against the electricity bills of July, which were issued in the month of August. He attributed fuel surcharge of June for the increased electricity bills.

“Due to more consumption of power in June because of heat, the surcharges mounted,” he said, while holding the previous government of Pakistan Tehreek-e-Insaf (PTI) responsible for the inflated bills due to high fuel surcharge. No new electricity was added in the system from 2018 to 2022, so when the power demand increased, the country had to produce power from thermal sources, which raised the power cost. He said even the solar, wind, Thar projects, were initiated by the previous government of PMLN. “We have the challenge of provision of electricity at cheaper rates,” he declared, adding that Shanghai Thar Coal project in Thar would be completed for cheap power as part of their vision.

“The other relief given is abolishment of fixed tax in electricity bills for traders by restoring the old mechanism of taxing on consumption,” the minister said. This relief is being given to the consumers of up to 200 units in view of the IMF issue, he added.

Power consumers who have paid their bills, would be adjusted under the new package, the federal minister informed. About the future projects, he announced that efforts would be made to complete the Thar project before the next summer and the PM would soon announce a solar policy to promote renewable energy. “In next summer, we will try to produce maximum power from indigenous sources rather than depending on imported fuel,” he noted. He said that effective installed capacity of electricity in the country was 24,000MW and rejected the claim of PTI that installed capacity was more than 30,000MW.

Responding to a question, the minister replied that restructuring of Nepra was underway. The regulatory body during the tenure of previous government was not working on its primary function that is revision of rates, he said.

As for the privatisation of KE, he said, unfortunately the power utility didn’t deliver the required results, however, efforts have been initiated to improve its working for the desired results.

Responding to another question, he said, the reconciliation of financial affairs of KE was also underway and positive results were expected from this reconciliation. As for the provision of relief in terms of electricity bills to the flood victims of Sindh and Balochistan, he replied, initially the government was focusing on their rescue, later the steps, for relief and rehabilitation, would be taken. Khurram Dastgir informed that electricity consumers would see reduced bills in the month of October as the working for reduction in power bills had been completed by the government.

He also announced that power supply situation in Karachi would improve in the coming months, as talks were held with the management of K-Electric (KE) in Islamabad. He expressed the hope that the pending financial issues with KE would be resolved, especially since the Finance Ministry was fully cooperating in this regard.