ISLAMABAD: The caretaker government is ready to introduce a new system of electricity rates aimed at accelerating economic growth, but domestic consumers are feared to be deprived of a subsidy worth Rs 631 billion.
According to the details, as per the instructions of SIFC (Special Investment Finance Council), the Power Division has submitted the draft of the new electricity tariff design to the Ministry of Finance to get approval for the new system from the IMF as the existing tariff system.
Officials said that nothing is being achieved from the current tariff except economic misery, 98 percent of the domestic consumers are getting a Rs 631 billion subsidy, and the government’s share is Rs 158 billion, while the rest of the costs have to be borne by industrial, commercial and high-end consumers.
Earlier this month, ahead of the SIFC Apex Committee meeting on January 3, the Power Division was directed to restructure the electricity tariff system. Under the new system, economic activities are intended to be accelerated.
During the SIFC meeting, the Power Division while giving a briefing on the completion of the restructuring said that the new tariff system will be submitted to the Finance Ministry soon. The approval of the tariff system will also be taken from the IMF. The Ministry of Energy will submit it to the IMF.
Consumers have to pay 72 percent of the total cost of the electricity unit in the form of fixed and 28 percent variable charges, however, in the direction of revenue, fixed charges are 2 percent and variable 98 percent. In the current tariff, 2 percent revenue is fixed.
In this regard, the authorities further said that the structure of cost and revenue in the electricity tariff is similar. 72% of the cost is fixed while 98% of the domestic consumers, who number 2.9 million, are taking a subsidy of 631 billion, which will end. There are possibilities.
