Power Division stresses caution on hefty power taxes
Says high taxes and capacity payments are contributing to rising circular debt
The higher rate of electricity theft is the major reason for the rising circular debt that has touched Rs2.3 trillion in January this year. PHOTO: FILE
ISLAMABAD:
The Power Division has called for rationalisation of heavy taxes in the power sector, which have pushed the electricity prices higher and added to the burden of the consumers.
Due to the high rates of electricity, power theft became rampant as the tariff was not affordable for the consumers. In addition, the bleeding power distribution companies of Sindh, Balochistan and Khyber-Pakhtunkhwa (K-P) also largely contributed to the ballooning circular debt.
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The government has started the process of increasing electricity tariffs to generate more than Rs1 trillion additional revenue for distribution companies. AFP/File
ISLAMABAD: The government has started the process of increasing electricity tariffs to generate more than Rs1 trillion additional revenue for distribution companies of ex-Wapda to meet their revenue requirements for the fiscal year 2020-21.
The increases are being sought on account of annual adjustments, indexations of distribution margins for FY2020-21 and some prior-year adjustments in line with agreements reached with international lending agencies.
As part of the process, the National Electric Power Regulatory Authority (Nepra) on Thursday conducted a public hearing on the tariff increase petitions of three major distribution companies (Discos) from Faisalabad, Lahore and Islamabad. The hearing on petitions of other Discos would follow over the next few weeks.
Pakistan: Govt starts process of raising power tariff to generate Rs1tr revenue – Voice Of Vienna voiceofvienna.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from voiceofvienna.org Daily Mail and Mail on Sunday newspapers.