October 24, 2008	Friday	Shawwal 24, 1429

ISLAMABAD, Oct 23: The government deferred on Thursday implementation of the recently announced 31 per cent increase in power tariff and formed a special committee to look into the matter. It also offered apology to the nation for inconveniences caused by the prolonged power outage.

“I personally apologise to people for the hardships they are facing due to power shortages and appeal to them not to resort to protests, violence or damaging public property,” Water and Power Minister Raja Pervez Ashraf said at a press conference here.

He said that on the directives of President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani, a special committee had been constituted to investigate the confusion over the increase in tariff approved by the National Electric Power Regulatory Authority (Nepra) on Oct 9.

The committee, to be headed by the minister for water and power, includes representatives from Nepra, water ministry, Water and Power Development Authority (Wapda), chambers of commerce, traders’ bodies and civil society organisations. It will hold its maiden meeting on Friday.

Journalists have also been invited to attend the meeting.

Mr Ashraf said that eight power distribution companies and the Karachi Electric Supply Company (KESC) had been directed not to charge any surcharge or tax for late payment of bills. He also said that people who had already paid their bills would get their money back if there was any adjustment in power rates recommended by the committee.

He said the power shortage, which was 5,000MW a few days ago, had reached 7,000MW —1,000MW was due to non-supply of furnace oil to power generation companies and over 2,400MW because of a drop in hydel production.

The minister said Punjab and Sindh needed water for wheat crop and temperature was unusually high, aggravating power shortages.

He said the government had approved a 31 per cent increase in power tariff against Nepra’s demand for a 64 per cent hike. “And, even after the increase, the government is still paying Rs65 billion in subsidy,” he added.

However, independent analysts said the actual increase in tariff was 71 per cent, and not 31 per cent.

The water minister denied reports that Nepra had passed on to consumers the cost of damage and line losses suffered by the KESC and distribution companies.

He claimed that the increase in tariff had been approved keeping in view the cost level of the Islamabad Electric Supply Company, which had “a good record and experiences low line losses”.

“I want to put this case in the court of the people. I am a politician and I am well aware of the sentiments of the people, but sometimes we have to make hard decisions.”

The government, Mr Ashraf said, was taking necessary steps to bridge the gap between generation and consumption of electricity. He said that an international competitive bidding was held for setting up plants of 1,500MW capacity, while installation of 2,250MW plants was in the pipeline.