No more free electricity for govt employees - SAMAA English

No more free electricity for govt employees - Pakistan - SAMAA

No more free electricity for govt employees

The government on Saturday announced to withdraw of electricity subsidy for government employees above Grade 17.

Instead of free electricity, the government employees above Grade 17 will be given allowance, said Secretary Power, Rashid Langrial, who also revealed at a press briefing that a formal proposal in this regard will likely be presented to the cabinet in the near future.

Additionally, he emphasized that Nepra, not the government, is in charge of determining tariffs. Fuel costs, currency rates, and loan interest rates are the three main variables on which Nepra based its pricing decisions, adding that any one of these factors rising requires a tariff adjustment. So, increased usage results in decreased capacity costs, which then result in a drop in the rate.

Regarding the fiscal outlook, the secretary power noted that the projected baseline for the next year’s dollar rate stands at Rs 286. Despite this projection, the current rate remains elevated. He emphasized that a substantial Rs 2 trillion will be allocated for electricity procurement in the upcoming year. Among the 30.5 million consumers, approximately 63 percent fall within the usage bracket of up to 200 units, and only 4 million consumers possess air conditioners.

Langrial also revealed that Rs 8.92 per unit tax aligns with IMF conditions. Additionally, a staggering Rs 177 billion need to be dedicated annually to service IPP loans. The gap between annual revenue and expenditure stands at Rs 976 billion, which is supplemented by government support.

He underscored the rampant issue of electricity theft in areas like Azad Kashmir, FATA, and Quetta, while even the affluent individuals in Karachi are receiving a 10 rupees subsidy per unit. A startling Rs 201 billion are being lost due to electricity theft.