ISLAMABAD – After having passed on the complete tariff hike on to the consumers by the National Electric Power Regulatory Power (NEPRA), the government would on Monday (tomorrow) notify an imposition of two percent surcharge on power tariff, applicable from April 1.
An official source said the IMF had asked for an increase in power tariff, but the government informed that the determined power tariff had been completely passed on to the consumers. The power tariff could be increased only if the regulator determined new tariff on the application of distribution companies (DISCOs).
The imposition of surcharge was delayed, because before its notification, the government had to notify three tariff determinations of NEPRA on account of monthly fuel adjustments. The regulator had determined a tariff reduction of Rs 1.08 per unit for November, followed by a 58 paisa decrease in December and an increase of 38 paisa per unit in January.
The government had passed on two percent increase in power tariff in October and November last year to consumers, but the tariff was frozen after that. After an adjustment of fuel-based tariff reductions, the net increase from the next month would be about 16 paisa per unit, the source said, adding that the absence of law and power secretaries delayed the issuance of notification on Saturday.
To fulfill IMF’s condition, a further imposition of two percent surcharge would be notified in the months of April and May to bridge the gap of six percent in the power tariff. However, the hike would not resolve the chronic problem of circular debt, as there would be still a difference of 18 percent in generation cost and tariff, the source said.
During the recent talks, IMF had agreed that the government should pick up Rs 140 billion in circular debt and also desired holding a third party technical audit to determine the causes, liabilities of various entities and point out those responsible for the circular debt.
