New power tariff to be effective from 7th

The government says due to increase in price of petroleum products in the international market, the electricity generation cost has increased many folds, and it only passed on less than ten per cent to the consumers about few months back.

The Independent Power Producing Companies (IPPs) are unable to generate electricity at their full capacity, as their fuel supply line has been disrupted due to non-payments to the oil marketing companies. The IPPs own more than Rs 75 billion to the government and in return the IPPs upheld the payments of fuel suppliers. The net of inter-corporate debt has reached closer to Rs 400 billion.

Pakistan Electric Power Company (Pepco) and other power companies' receivables have crossed Rs 150 billion.

Agencies add: The Ministry of Finance has okayed up to 31 per cent increase in the electricity tariff which will be implemented from September 7, while Federal Minister for Water and Power Raja Pervez Ashraf said that the government had no choice but to take this step.

According to sources, the Ministry has approved the summary for raise in electricity rate. It was sent by Nepra.