Powerful shock for powerless

Published October 11, 2013
- File Photo
- File Photo

ISLAMABAD: Domestic power consumers would bear yet another jolt as National Electric Power Regulatory Authority (Nepra) has finalised 72-176 per cent hike in the power tariff effective from October 1, 2013, and the water and power ministry will issue a notification on Friday (today).

Acting Chairman Nepra Khawaja Muhammad Naeem told DawnNews on Thursday that necessary legal requirements coupled with the obligatory procedure involved in giving reviewed decision related with review in the tariff of Discos of 2012-13 had been completed now and the regulator had dispatched its reviewed decision to the ministry.

An official of water and power minister told DawnNews on condition of anonymity that despite the concerns raised by the Supreme Court about the colossal hike in the power tariff, power ministry has tactfully compelled Nepra to decide 72-176 per cent hike in domestic power tariff.

And, just nine days after the unprecedented hike in price of power tariff notified by the water and power ministry, Nepra has now issued its verdict in the light of a subjudice matter with Supreme Court and also keeping in mind the sent advice of power ministry, under which power consumers have been deprived of long awaited relief.

Official documents of Ministry of Water and Power, available with Dawn News, reveal that the water and power ministry in a bid to fulfil necessary legal requirements had submitted a review application on October 4 with Nepra seeking review in Discos tariff for 2012-13.

The ministry in its review application had also asked Nepra to clearly include the subsidy in the power tariff being given by the federal government to power consumers on the basis of each consumer category.

And, Nepra has made it possible through its decision.

According to the subsidy being provided by power ministry to the domestic power consumers that use 50 units, 1-100 units and 101-200 units per month the tariff has been kept stable at Rs2, Rs5.79 and Rs8.11 per unit.

Interestingly, Rs14/unit a new power tariff rate has been finalised for the category of 201-300 units a month and Rs16/unit for 301-700 units while Rs18/unit for above 800 units category.

A rate of Rs18/unit for peak hours while Rs12.50/unit for off peak hours has been fixed now.

Undoubtedly these rates are the same as were notified by the water and power ministry on October 1.

The government had allowed only one-slab benefit when domestic power consumption would move towards the higher slab above 200 units per month. Similarly, the tariff for 201-300 units category per month has been increased by 72pc directly (Rs8.11 per unit) and sat it at Rs14/unit and consumers of this category will not get benefit of Rs5.79 per unit on initial 100 units.

Likewise, the tariff of power consumers use 301-700 units per month has also been increased by 30pc to Rs16/unit from Rs12.33. The category of 301-700 units/month will face an increase of 30pc to 142pc because of non-provision of benefit of two lower slabs and their tariff will start from Rs14 per unit on initial 1-300 units.

The tariff for above 700 units per month has been increased by 19.5pc to Rs18/unit from Rs15.07. The domestic power consumers of this category will not get the benefit of three lower slabs and their tariff will start from Rs16 per unit for 1-700 units and for above 700 units per month it will be Rs18 per unit. And, consumers of this very category will also face an increase of 19.5pc to 176pc only because of non-provision of lower slabs benefits.

The documents have further divulged that federal government is providing Rs168 billion worth total subsidy to all power consumers.

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