Electricity prices raised significantly in Pakistan by new PTI government: Sources
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ISLAMABAD - In an unexpected blow the PTI government has significantly raised the prices of the electricity in Pakistan.
Economic Coordination Committee (ECC) of the Cabinet, headed by Minister for Finance Asad Umar approved an increase in electricity price by Rs2 per unit.
The ECC also agreed to sever all illegal electricity connections within three months. A decision to install prepaid electric meters was also taken.
The committee also resolved to take immediate action against power-sector defaulters, including ministries and government departments.
The meeting agreed that electricity meters of those persons, departments and ministries or any private entity will be disconnected if they fail to pay their bills for consecutive three months. On the payment of their bills, they will be provided prepaid meters. The ECC chairman directed the Power Division to take strict legal action against those officials and individuals who are involved in power theft and not to show any leniency on the issue.
On the presentation of the special audit report on payment of circular debt of Rs480 billion paid by the last PML-N-led government, the ECC directed to hold an operational and financial audit of Discos. It was decided that the Auditor General for Pakistan will complete the audit of four highest loss-making Discos in one month's time and the audit of the entire sector will be completed in two months after approval from the cabinet.
The meeting received a presentation on the issue of circular debt that has accumulated over the years to a hefty sum of Rs1,188 billion. The committee was briefed on the impact of Industrial Support Package, Azad Jammu Kashmir subsidised units, Balochistan agricultural tubewells, Fata receivables, and the impact of existing time lag on tariff determination mechanism of the National Electric Power Regulatory Authority (Nepra).
