ISLAMABAD – In an unexpected blow the PTI government has significantlyraised the prices of the electricity in Pakistan.
Economic Coordination Committee (ECC) of the Cabinet, headed by Ministerfor Finance Asad Umar approved an increase in electricity price by Rs2 perunit.
The ECC also agreed to sever all illegal electricity connections withinthree months. A decision to install prepaid electric meters was also taken.
The committee also resolved to take immediate action against power-sectordefaulters, including ministries and government departments.
The meeting agreed that electricity meters of those persons, departmentsand ministries or any private entity will be disconnected if they fail topay their bills for consecutive three months. On the payment of theirbills, they will be provided prepaid meters. The ECC chairman directed thePower Division to take strict legal action against those officials andindividuals who are involved in power theft and not to show any leniency onthe issue.
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On the presentation of the special audit report on payment of circular debtof Rs480 billion paid by the last PML-N-led government, the ECC directed tohold an operational and financial audit of Discos. It was decided that theAuditor General for Pakistan will complete the audit of four highestloss-making Discos in one month’s time and the audit of the entire sectorwill be completed in two months after approval from the cabinet.
The meeting received a presentation on the issue of circular debt that hasaccumulated over the years to a hefty sum of Rs1,188 billion. The committeewas briefed on the impact of Industrial Support Package, Azad Jammu Kashmirsubsidised units, Balochistan agricultural tubewells, Fata receivables, andthe impact of existing time lag on tariff determination mechanism of theNational Electric Power Regulatory Authority (Nepra).
