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On IMF pressure, government to re enact three surcharges on electricity consumers

On IMF pressure, government to re enact three surcharges on electricity consumers

*ISLAMABAD: *The government in line of recommendations made by theInternational Monetary Fund (IMF) has decided to re-enact three surchargeson power consumers.

The National Electric Power Regulatory Authority in its defence said it wasbound by the law to permit the government to re-levy these charges undersection 31 (5) of its law, reported *Dawn.*

The three surcharges re-levied on electricity consumers amount to Rs1.55per unit would cover the Rs110 billion power theft, non-recovery by powercompanies and system losses.

Nepra said the Lahore High Court in its judgement dated May 29th, 2015 haddecided these surcharges were unconstitutional and the decision waschallenged by the federal government in the apex court.

The Supreme Court suspending the verdict of the LHC and Nepra added thesame cases regarding surcharges were lying before high courts in Islamabad,Balochistan, Sindh and KP.

The regulator highlighted the distribution companies were part of thesepetitions pending before these respective high courts and hence followingcourt directives would have to implement these surcharges.

From these three surcharges set to be re-levied, one is the Financing CostSurcharge amounting to 43 paisa per unit which would amass Rs30-32 billionfor debt servicing of Power Holding Private Limited.

The second one is the Neelum-Jhelum surcharge set at 10 paisa per unit,which would enable to raise Rs7.5 billion on a yearly basis.

And the third surcharge termed the Tariff Rationalization Surcharge (TRS)will be charged at an average rate of Rs1.02 per unit.