Electricity to get dearer by Rs1.95, as govt blames PML-N ‘land mines’

By News Desk

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government will increase the electricity tariff by Rs1.95 per unit, Minister for Energy Omar Ayub announced on Thursday, as he blamed the Pakistan Muslim League-Nawaz (PML-N) regime for setting “land mines” for the ruling party.

Addressing a news conference accompanied by Minster for Planning and Development Asad Umar and Special Assistant to Prime Minister for Power Tabish Gohar, Ayub said the PTI government inherited capacity payments from the PML-N government.

The agreements, inked by the PML-N government with the power sector, were based on “bad intentions and corrupt practices”, he added. The minister said due to these deals, the increase in electricity tariff would have been Rs2.18 but the present government had decided to increase the rates by Rs1.95 in per unit.

He said the annual capacity payments to independent power producers (IPP) were Rs185 billion in 2013, Rs468 billion in 2018, Rs642 billion in 2019, Rs860 billion in 2020 and would reach Rs1,455 billion in 2023. “These are the land mines, I am talking about,” he said.

Omar Ayub said the major reason of the recent power breakdown was technical. An investigating committee comprising National Transmission Despatch Company, Nepra and the power ministry had been constituted to look into the reasons and to address the issues, he added.

According to a preliminary investigation, six to seven officials have been suspended. He said the report, when finalised, should be submitted to the power committee besides sharing with media.

Speaking on the occasion, Special Assistant to Prime Minister on Power, Tabish Gohar said the government had taken number of initiatives to reduce circular debt. He said due to the initiatives of the present government Re1 to Rs2 per unit would be reduced in the prices of electricity in the upcoming years, adding that the government had made agreements with the power sector as per the law and regulations.

The aide said with the coordination of provinces, the federal government will take steps to rein in electricity theft. Gohar said deficiencies of power companies would be improved and their “monopoly” would be ended in next three to four years.