ISLAMABAD, March 3: Recommendation on reduction of power tariff will be sent to the cabinet within the next week and a decision in this regard will be implemented soon, says Federal Minister for Water and Power Aftab Ahmed Khan Sherpao.
He said this while talking to journalists at his parliament house chambers here on Wednesday. Mr Sherpao said the recommendations made by the Task Force on Power Tariff Reduction had been received in his ministry, adding they would be processed by an inter-ministerial committee before the finalisation of the recommendations to the cabinet.
The inter-ministerial committee, he said, would comprise officials of ministries of water and power, finance, CBR and other departments concerned, which would finalise these recommendations by taking all aspects of the matter into account.
Meanwhile, sources in the ministry of power said that the ministry was highly likely to recommend a reduction of upto 20 paisa per unit. They said that the government was targeting an annual reduction in power rates as Independent Power Producers reduce their power rates in accordance with an agreement.
Mr Sherpao said Wapda, after converting its thermal power plants to gas, had achieved savings worth Rs8 billion between July, 2003-Jan 2004 period, adding it would save an additional Rs2 billion from next year from the payments to IPPs.
He said that Wapda had paid Rs115 billion this year, highest amount under the agreement, to the IPPs which would gradually come down between Rs1.5 billion and Rs2 billion per annum and the government intended to pass on all these savings to the industry and common consumers through reduction of power tariffs.
