Consumers using 301-700 units: power tariff to go up by 30 percent from next month: Federal government is to increase power tariff by Rs 5.86 per kWh or 72.6 percent (from Rs 8.11 to Rs 14 per unit) for middle income category of domestic consumers using up to 300 units per month across the country except areas that fall under the jurisdiction of Karachi Electric Supply Company (KESC) from October 1, 2103, well-informed sources told. The sources said tariff for consumers who use 301-700 units in a month will be increased by about 30 percent to Rs 16 per unit from Rs 12.33 per unit. Rich consumers who use above 700 units per month will pay Rs 18 per unit instead of Rs 15.07 per unit from next month. The impact of this raise will be in addition to GST. For peak load requirement exceeding 20 kV, Time of Day (Peak) tariff will be increased from Rs 13.99 to Rs 18 per unit, Time of Day (off-peak) from Rs 8.22 per unit to Rs 12.50 per unit and temporary domestic from Rs 15.50 to Rs 16.50 per unit. However, tariff for consumers who use 50 units, 100 units and 200 units in a month will be Rs 2 per unit, Rs 5.79 per unit and Rs 8.11 per unit. Tariff for agriculture consumers will be fixed at Rs 10.35 per unit instead of Rs 11.51 per unit. Fixed charges on agriculture meters have also been slashed from Rs 200 to Rs 120. Public lighting - tariff G - Rs 15 per unit from Rs 13.73, housing colonies attached to industrial - H, Rs 15 per unit from 12.92 per unit, railway traction Rs 15 per unit from Rs 11 per unit, ToD - peak Rs 18 per unit from Rs 13.30 and off-peak Rs 12.20 from Rs 7.92 per unit. Tariff for Rawat Laboratory will be increased from Rs 11 per unit to Rs 15 per unit. According to International Monetary Fund (IMF) four-phase plan prepared by the GoP will reduce subsidies from about 1.8 percent of GDP to 0.3-0.4 percent of GDP in three years. The first phase entailed the almost full elimination of subsidy for industrial, commercial, bulk, and AJ&K users, accomplished through an increase in tariff of about 50 percent at end-July. The majority of domestic consumers are excluded from increases at this stage. The second phase entails the elimination of subsidy for consumption over 200kWh, SCARP3, and others (public lighting, housing schemes, railways, HVTL4), and reducing the subsidy in agriculture by about 13 percent. The corresponding price increases have already been approved and notified effective October 1, 2013 In FY 2014/15 and FY 2015/16 authorities will reduce the remaining subsidies (on agriculture and consumption below 200kWh) in order to reduce the fiscal burden to 0.3-0.4 percent of GDP. By the end of phase four the subsidy for consumption above 200 kWh will be eliminated and it will be reduced for those who consume below 200 kWh. While most households will see price increases, subsidies will remain for the lowest level consumers and increases in targeted transfer programmes will also protect the poorest. Pakistan's strategy is broadly consistent with the lessons learned from previous energy reforms. Their strategy addresses the six key elements usually linked with successful reforms: (i) they developed a comprehensive energy sector reform plan with long-term objectives, (ii) they have launched a communication strategy, (iii) the price increases are phased and sequence differently across energy products, (iv) they are strengthening their cash transfer programme to protect the poor, (v) they are working towards improving efficiency in state-owned enterprises, and (vi) they are working towards improving the timeliness of the pricing mechanism . The government had increased commercial, industrial and AJK's power tariffs massively with an estimated financial impact of Rs 136 billion per annum. Tariff for domestic and agriculture consumers will be raised in the last quarter of the current calendar year. Tariff for commercial consumers who are in the category of peak load requirement up to 5kW has been raised to Rs 18 per unit from Rs 14.77 per unit.
Posted on: Tue, 24 Sep 2013 05:42:06 +0000
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