5 days ago
'Special relief in power tariff still in place'
A special relief involving a Rs7.41 per unit reduction in electricity price, as announced by Prime Minister Shehbaz Sharif, is still in effect despite a rising cost of electricity.
According to a statement issued on Saturday by the Ministry of Energy, the cost of electricity generation is increasing due to the lowest hydropower generation in the country's history in recent months and the reliance on expensive power plants running on alternative fuels.
"In view of this decline in hydropower production, the Ministry of Energy has issued directives to all provincial governments and relevant federal ministries to enforce Energy Efficient Building Codes, so that electricity bills can be reduced during periods of extreme heat and cold."
In addition, it said, the government is preparing to offer energy-efficient fans — which consume up to 70% less electricity — on easy interest-free installments, which will help in replacing old fans and significantly lowering electricity bills.
Federal Minister for Energy Ali Pervaiz Malik on Friday stated that power-generating companies are not utilizing imported gas as per agreements and resultantly expensive gas is being sold to domestic consumers at subsidized rates, leading to a rise in circular debt.
"The power companies are violating their agreements, which is increasing the liabilities of the national gas importing companies," said Malik, while speaking to the media at the head office of the Sui Southern Gas Company (SSGC).
Malik highlighted that the government's success in reducing electricity prices and maintaining current petrol and diesel prices is a significant achievement. However, relief in the electricity sector has become a burden on the petroleum sector.
