LAHORE: The power sector is becoming increasingly unsustainable and the state is compounding the conundrum by covering up its failure to rapidly industrialise, while it blames higher capacity.
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.
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Power sector in new crisis
Influential lobby places members on board of distribution firms against merit
PHOTO: EXPRESS
LAHORE:
The power sector of Pakistan is being pushed towards a new crisis by an influential lobby that has mobilised the federation to pave way for privatisation of power distribution companies including Lahore Electric Supply Corporation (Lesco), Faisalabad Electric Supply Company (Fesco) and Islamabad Electric Supply Company (Iesco).
The lobby has successfully promoted its own chosen members on the board of directors of distribution companies against the merit. The Independent Power Producers (IPPs) and foreign investors have expressed interest to buy power distribution companies, which have assets worth billions of dollars.