Yet another big hike in electricity prices on cards by PTI government
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ISLAMABAD - Yet another big hike in electricity prices is on cards by PTI government following agreement with the IMF.
The government of Pakistan, following its agreement with The International Monetary Fund (IMF) is likely to increase the power tariff by another Rs3.5 per unit, a local media outlet reported link.
According to the report published, the Pakistan Tehreek-e-Insaf government plans to increase power tariff by Rs3.5 per unit by clubbing the impact of the hike in gas prices for the current fiscal year.
The Power Division, as per the IMF’s condition, has imposed a quarterly automatic tariff adjustment it the power sector of 10 per cent to cope up with the circular debt by generating an additional Rs150 billion in the first half of FY 2019.
Moreover, the remaining adjustments costs are to be passed onto the consumers towards the end of August 2019. Meanwhile, electricity tariff schedule for FY2020 will be notified by the government towards the end of September 2019.
According to sources cited it the report, the Power Division has recently suggested a list of measures to reduce the line losses and circular debt to zero. It has been suggested that to stop further accumulation of debt due to the quarterly adjustments in the per-unit cost to the consumer, the per-unit cost should be kept between Rs12.98 per unit to Rs13.85 per unit in March 2019 and Rs15.31 per unit in June 2019.
