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HomeWorldPakistanElectricity tariff discount will be restored: mytha

Electricity tariff discount will be restored: mytha

ISLAMABAD:

Minister of Finance Miftah Ismail on Wednesday cleared air on the supply of electricity to consumers of 300 units per month on Account of fuel cost adjustment (FCA) for month of June – get well in coming months.

“It has been postponed,” Miftah replied curtly, when asked if the prime minister had postponed or abandoned Shahbaz. off Rs 9.90 per FCA unit.

He addressed news conference together with Defense Minister Khawaja Asif.

Last week in the prime minister’s office announced that the Prime Minister refused off in one- one-time surcharge for electricity from consumers in the amount of 9.90 rupees per unit of up up to 300 units

Surcharge was on Account of expensive fuel-based electricity generated in June.

However, it will be restored in next six monthly electricity bills.

” government does not have a fiscal space give up off electricity surcharge of Rs 9.90 per unit as this will require a subsidy of 30 billion rupees,” the statement said. official of power division.

After nationwide protests against inflated electricity bills in August because of 7 rupees per unit of increase in base rates; the ending last bottom plate rate benefit; and 9.90 rupees per unit one- once a month FCA; in prime minister paused recovery of surcharge for one month and struck amount over six months.

11.4 million households protected under decision using less than 200 units have an initial payment of Rs 3.90 per unit in August and the rest 6 rupees per item cost will be restored in rate of Re1 per unit in six months from October 2022 to March 2023.

Similarly, domestic unprotected 4.2 million consumers using less than 200 units of consumption will not pay a surcharge this month, but cost will be restored in rate of Rs 1.65 per item in six months, from October to March 2023.

The same treatment is expected to apply out consumers from 201 to 300 units.

Pakistan Bureau of Statistics reported that electricity prices in August were 123.2% higher than in the same month year back, reflecting the increase on three various Accounts.

Protection minister disclosed that government considered retaining Finance Minister Miftah Ismail after the expiration of his six ad hoc months term in middle of next month.

minister, who contrary to opinion that Prime Minister Shehbaz Sharif refused off 10 rupees per unit of increase in electricity prices for consumers of up up to 300 units, confirmed that recovery of the surcharge was only delayed.

“From prime minister everyone is happy with the media with in performance of Mifta Ismail and others. government will consider extending in his tenure,” Asif said.

He answered the question about government will appoint new finance minister after October 15, or make Miftah either a senator or financial adviser.

“He has performed well and we are considering keeping him,” Asif said.

government may ask an incumbent senator whose term ends in 2024 to make room for Myth.

He was appointed financier minister for Period of six months after Prime Minister Shahbaz took office in April of this year.

Asked about seeking emergency funding from the International Monetary Fund (IMF) after the recent floods that devastated them and the economy, Mifta said he would talk to global creditor mission chief, but government no hard numbers yet of losses that have been estimated in in range of from 10 to 20 billion dollars.

Finance minister said the meeting was called on request of IMF.

When asked, Miftah said that the ongoing power outages could not end soon, adding that there would otherwise be a further increase in electricity prices. “It is possible to produce expensive electricity or supply up with a little power shutdown,” he added.

Protection minister hoped that the ongoing wave of high inflation may recede in next two or three months. “Within three months there will be an economic recovery, [power outages will end and the prices of the petrol will also be less than today,” said Asif.

Miftah said that some of the quarterly fuel price adjustment surcharge would end in October, helping in lowering the electricity prices. He added that the prices of petrol and diesel would depend on the international trends.

The government has assured the IMF that as a matter of principle, energy subsidies would be contained to Rs570 billion.

Of this amount, Rs225 billion will be for the tariff differential subsidy arising from the power tariff adjustment path.

After increasing electricity prices by Rs7 per unit in July and August, the government has committed to the IMF that it would further increase the rates by 91 paisas per unit by the end of September.

This will follow automatic increases in electricity prices on account of quarterly tariff adjustments for the July-September period, estimated at Rs3.39 per unit.

The government has promised with the IMF that it would withdraw the electricity subsidy being availed by the agricultural tube wells.

A plan to withdraw subsidy for tube-wells for large-scale farmers will be submitted to the federal cabinet by November 2022.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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