Ogra okays 30pc hike in gas tariff

LAHORE - The government has decided to allow 7 per cent increase, to be announced by July this year, in the current electricity tariff for all except certain consumers, it is learnt.

The ministry had earlier given assurance to the PEPCO with respect to hike in the context of plea put forward by all eight electricity distribution companies (DISCOs) of Pakistan Electric Power Company (PEPCO), demanding the 23 per cent increase in the existing electricity tariff, the PEPCO sources said.

The DISCOs had submitted plea in May this year for increase in their tariff, stressing that the 10 per cent increase was not enough as of now after the steep increase in the fuel prices to meet the financial shortfall.

The federal government had allowed DISCOs to raise power tariff by 10 per cent on February 24 last against the demand of 33 per cent increase, which was made applicable from the month of February.

The sources concerned said that the companies accepted the notified tariff but decided to file review petitions to plead for the additional raise. The decision of the Authority in the consumer-end tariff for the DISCOs pointed out.

As per the sources, the furnace oil and gas prices have increased by 54 per cent besides substantial hike in electricity demand particularly from the middle-income consumers, as well as, rural electrification, but they somehow are paying much more price as compared to the cost of service being provided to them.