Tag: Relief plan

  • NEPRA recommends electricity rate increase of Rs3.28 per unit

    NEPRA recommends electricity rate increase of Rs3.28 per unit

    The National Electric Power Regulatory Authority (NEPRA) has officially proposed to the government an increase in the electricity tariff of Rs3.28 per unit, citing the need for a quarterly adjustment.

    In this proposal, NEPRA is looking to impose an additional financial burden of approximately Rs160 billion on consumers of electricity. According to ARY News, this recommendation has been conveyed to the caretaker federal government through an official summary, outlining the suggested increment of Rs3.28 in electricity rates as part of the fourth-quarter adjustment for the fiscal year 2022–23. 

    The proposed increase, subject to approval by the federal government, would also apply to K-Electric consumers. As a result of this adjustment, power consumers would be required to make additional payments over the next six months, spanning from October 2023 to March 2024. 

    It is worth noting that the proposed surge in power tariffs has incited protests throughout the country, with citizens expressing their displeasure over the considerable rise in electricity costs and the imposition of excessive taxes on electricity bills. In some instances, individuals infuriated by inflated bills have resorted to burning them as a form of protest, while certain political factions have threatened to stage sit-in demonstrations outside K-Electric offices. 

    This unrest surrounding the increased electricity tariffs coincides with Pakistan’s ongoing economic struggles, characterised by financial constraints and an inflation rate hovering around 29 per cent. 

    Furthermore, it is important to highlight that the International Monetary Fund (IMF) has reportedly discouraged Pakistan from offering relief to consumers using over 200 units of electricity on a monthly basis. According to sources, the IMF argued that reducing electricity bills for such consumers would not address the issue of circular debt. 

    Consequently, relief in the form of deferred payments for electricity bills will be exclusively extended to consumers who consistently utilise less than 200 units for six consecutive months. This relief would be rescinded if a consumer’s bill exceeded 200 units within the same timeframe, as per the sources. 

    Caretaker Federal Minister for Energy, Power, and Petroleum, Muhammad Ali, has also announced that the revised electricity tariff will be introduced before October 31. During a press conference held alongside Sindh Governor Kamran Tessori, Minister Ali emphasised the government’s commitment to combating electricity and gas theft through indiscriminate measures. 

    He added that efforts are being made to regulate and potentially lower electricity tariffs, with a goal to supply cost-effective electricity to industries starting on October 31. Muhammad Ali attributed the surge in electricity bills to electricity theft and the increased price of the US dollar. 

    While acknowledging the challenges of amending previous agreements, the minister pledged that the government would explore solutions within the framework of existing arrangements. He also expressed the government’s commitment to promoting solar energy despite the lack of reductions in solar equipment prices, outlining plans to devise a strategy for the promotion of solarization. 

  • IMF’s ‘yes or no’ decision nears on relief for electricity bills

    IMF’s ‘yes or no’ decision nears on relief for electricity bills

    In the midst of extensive protests regarding soaring electricity charges, the interim government has reportedly devised a strategy aimed at alleviating the financial burden on electricity consumers in the country.  

    According to Geo News, the interim government is preparing a relief package that will grant up to Rs3,000 in relief to customers who use up to 300 units of electricity in their October bills. Furthermore, those facing electricity bills between Rs60,000 and Rs70,000 stand to benefit from a significant reduction of Rs13,000. 

    Simultaneously, discussions between the International Monetary Fund (IMF) and the interim government are ongoing, focusing on providing relief to electricity consumers. 

    In a separate report by The News, it’s revealed that the IMF, headquartered in Washington, has requested additional data from the Power Division to inform its decision regarding various proposals to address the impact of high bills in August and September. 

    “We have shared the required data with the Fund people hoping that IMF may today (Monday) come up with its response with a yes or no to the assertions of the Finance and Power Divisions, seeking permission for relief to inflation-stricken people in electricity bills,” shared sources involved in discussions with the IMF. 

    Currently, officials from both the Power and Finance divisions are engaged in intensive discussions with IMF representatives, considering the data associated with proposed measures to alleviate power tariffs and their potential effects on circular debt, cash flow, and potential delays in Independent Power Producers (IPPs) payments, ensuring the stability of the power sector. 

    In response to continuous protests by citizens and traders against soaring power bills and added taxes, the government is actively seeking to convince the global lender to grant immediate relief to electricity consumers in a nation already grappling with severe inflation. 

  • Relief plan for electricity bills to be revealed in 48 hours: PM Kakar

    Relief plan for electricity bills to be revealed in 48 hours: PM Kakar

    Caretaker Prime Minister Anwaar ul Haq Kakar made an announcement on Thursday, revealing that his administration will unveil a relief plan for addressing the widespread protests triggered by escalating electricity bills within 48 hours.

    PM Kakar informed me that his government conducted an exhaustive review of electricity bills spanning the last two months. He highlighted that all institutions were questioned regarding their utilisation of complimentary electricity and stressed that the issue of exorbitant electricity bills needed a measured perspective.

    According to Geo, the caretaker prime minister underscored that while the electricity bills must be settled, it is imperative to comply with the terms outlined by the International Monetary Fund (IMF). He attributed the surge in electricity bills to independent power producers (IPPs) and transmission line losses, emphasising that collaboration with the IMF was underway to address the matter. Despite the prevalent inflation, PM Kakar argued against an extensive strike.

    In addressing the allocation of free electricity units, PM Kakar assured that the military does not avail itself of free electricity; rather, it is funded through the defence budget.

    Additionally, he clarified that the judiciary does not enjoy complimentary electricity, and in the Wapda sector, only certain employees from grades 1 to 16 benefit from this provision. Employees in grades above 17 receive free units.

    PM Kakar expressed his perspective that most protests originate from employees in grades 1–16. He suggested redirecting financial assistance towards officers in grades 17 to 22 instead of offering free electricity. He emphasised the need for stakeholders to formulate a policy within the following 48 hours.

    Regarding the impending general elections, PM Kakar assured that the elections would occur as scheduled, with the understanding that the Election Commission of Pakistan holds the authority in this matter. He asserted that adherence to the interpretation of the law by the Supreme Court is essential and should be respected.

    Frustrated citizens, grappling with soaring inflation, have been participating in demonstrations against substantial increases in electricity tariffs and heightened taxes nationwide.

    In light of the ongoing public outcry over exorbitant electricity bills, the caretaker government is contemplating the possibility of allowing individuals burdened by inflation to settle bills for up to 400 units in six-month installments. This proposal emerged following discussions held during a cabinet meeting, which also addressed the influence of IMF conditions on elevated energy costs.

    During the session, caretaker Finance Minister Dr Shamshad Akhtar updated the attendees about ongoing negotiations with the IMF, highlighting its pivotal role in the escalated energy tariffs.

  • PM Kakar sets 48-hour deadline for relief plan amid electricity bill protests

    PM Kakar sets 48-hour deadline for relief plan amid electricity bill protests

    Amid escalating protests across the nation demanding relief from inflated power bills, Caretaker Prime Minister Anwaar ul Haq Kakar has taken proactive steps to address the pressing issue. In response to the ongoing unrest, Prime Minister Kakar convened a high-level meeting yesterday to strategise and formulate a comprehensive relief plan within the next 48 hours.

    The focal point of the meeting was an informative briefing provided by the Power Division, shedding light on the notable increase in power bills during the month of July. Attended by esteemed members of the interim cabinet, including Dr Shamsad Akhtar, Dr Gohar Ijaz, and the PM’s advisor, Dr Waqar Masood, the meeting aimed to address the mounting concerns over the substantially high electricity bills. There are growing fears that if swift action is not taken, the situation could spiral into widespread public protests and potentially even riots.

    In the aftermath of the meeting, PM Kakar took to social media to communicate the intended course of action. “The Ministry of Energy and the Ministry of Finance have been tasked with collaboratively devising an action plan aimed at providing relief to the public with regard to their electricity bills,” announced the Prime Minister, reiterating the government’s commitment to addressing the pressing issue.

    Beyond seeking immediate measures to curtail electricity consumption on government premises, Prime Minister Kakar emphasised that consultations would be initiated with all provincial representatives. He further assured the public that the caretaker government was resolute in its commitment to providing the maximum possible relief while remaining within its designated mandate.

    The Caretaker Minister for Information and Broadcasting, Murtaza Solangi, echoed the Prime Minister’s sentiments by sharing the key outcomes of the meeting via social media. He conveyed that PM Kakar had stressed the urgency of devising an action plan within the next 48 hours to alleviate the mounting financial burden caused by excessive charges on electricity bills. The Prime Minister’s emphasis was on implementing measures that wouldn’t have a detrimental impact on the national exchequer yet would genuinely alleviate the financial strain on consumers.

    The meeting concluded with a comprehensive commitment to tackle electricity theft, roll out energy-efficient initiatives, and initiate dialogue with provincial chief ministers regarding the substantial charges incurred in July. The meeting also included detailed briefings on pertinent issues within the electricity sector and strategies to counteract electricity theft.

    Against the backdrop of sustained protests, political parties from diverse backgrounds have voiced their concerns and demands. Jamaat-e-Islami has taken a decisive step by announcing a nationwide strike on September 2 as a means of voicing their discontent with the drastic surge in electricity bills. The party’s leader, Siraj-ul-Haq, articulated his intention to mobilise people across the country to participate in these protests, lamenting the financial hardship faced by salaried individuals due to soaring living costs.

    According to Brecorder, adding to the chorus of concerns, MQM-P leaders have issued a stern warning that the ongoing protests could rapidly escalate into violent riots if prompt relief measures are not taken. Farooq Sattar, Senior Deputy Convener of MQM-P, highlighted the burden of multiple taxes contributing to the high electricity bills, underscoring the palpable frustration among the populace.

    As the nation anticipates the proposed relief plan within the stipulated 48-hour timeframe, the government’s actions in response to the mounting crisis will significantly shape the trajectory of the ongoing protests and public sentiment at large.