Minister for Water and Power Syed Naveed Qamar will chair a crucial meeting that will decide issue of implementation of 4 per cent surcharge on power tariff from this month. An official source said a meeting has been convened in emergency to sort out difference between ministries of finance, water and power and law over interpretation of law for notifying increase in power tariff. The meeting will be attended by the secretaries of three concerned ministries. Ministry of water and power (MOWP) is withholding notification for imposition of 4 per cent surcharge on power tariff for last several weeks as law ministry views it to be a violation of stay orders granted against the previous surcharge of 2 per cent notified in May last fiscal year. MOWP is of the view that it can notify the new surcharge, but law ministry’s argument is that no surcharge can be imposed till stay orders were vacated. Acting on instructions of International Financial Institutions (IFIs) government has notified imposition of 2 per cent surcharge on electricity bills in April last fiscal to reduce power tariff differential subsidy. However, the notified surcharge of 2 per cent in May was challenged and courts granted stay order. This has withheld imposition of surcharge for last five months of current fiscal year. Pressed by IFIs to increase power tariff to zero the subsidy during current fiscal year government had made an amendment in regulatory law allowing NEPRA to notify monthly fuel adjustment charges. This was also challenged and stay was granted. Government is losing close to Rs30 billion per month due to the subsidy. The source said ministries were involved in an unnecessary argument as there was a way out by implementing the NEPRA determined new tariff for Islamabad Electricity Supply Company (IESCO). But government was not ready to implement it due to political backlash as it will allow double increase in power tariff as compared to planned imposition of 14 per cent surcharge this fiscal year. However, he said finance ministry was interested in surcharge as it will go directly to their coffers while new tariff implementation will go to power distribution companies (DISCOs).
