According to press reports, the government is likely to increase power tariff by up to six percent during the next fiscal year to bridge the gap between the determined and applied tariff to do away with the subsidy. The increase in power tariff was calculated on the basis of the business plan devised by Pakistan Electric Power Company (PEPCO) for its distribution companies. There is an estimated gap of Rs 1.10 per unit in the determined and applied tariff and two percent or Rs 0.20 per unit increase on monthly basis would be enough to bridge the gap.
Instead of increasing the production of electricity, reducing the line losses which are up to 20-30 percent and recovering the outstanding dues from federal and provincial government department and cantonments which are over Rs 200 billions, it is going for a route that would bring more trouble and hardships for the poor.
How long the PEPCO will go on increasing the tariff to burden the consumers? Power shortage is already crippling life and hurting the commercial and industrial sectors to a point that they are closing down. Many workers are out of jobs due to the closure of the industry. Consumers are suffering because of corruption, mismanagement of PEPCO and DISCOs.
It is time to divide the responsibility of supply of electricity between private and government at the provincial level. DISCOs should subcontract supply from substation to private contractors to large housing societies to supply power to its resident and also collect monthly bills. It is beyond the financial capacity of the government to invest in the power sector. Only the private sector with corporate management can solve the energy crises.
S T HUSSAIN
Lahore
