Govt provides highest amount of subsidy in electricity tariff

October 15, 2021: The average cost of providing electricity in the system is Rs.16.43 while the government provides the highest amount of subsidy in electricity tariffs to the lifeline consumers.

The amount of this subsidy at current rates was Rs.12.48, Officials sources told APP here Friday.

They said the National Electric Power Regulatory Authority (NEPRA) determined the rate of electricity

for such consumers was Rs. 4 per unit. The government provided electricity to such consumers at Rs. 3.95 / unit and the tariff for such consumers were fixed on Rs. 3.95, after an increase of Rs.1.95, they said.

The sources said the cost of providing electricity to the lifeline consumers was around Rs. 20/kWh which was far greater than the notified tariff rate for lifeline consumers who were charged a highly subsidized rate of Rs. 3.95 / kWh.

The government has already signed a Memorandum of Understanding (MoU) after negotiation with Independent Power Producers (IPPs) set up 1994, 2002, and 2006 power policies. The process was now in a stage of

implementation of MoU, they said.

The process of closure of low-efficiency thermal power plants (GENCOs) of around 4221 MW capacity of

Guddu and Nandipur power plants had also been started, they said.

They said the government had also launched a support package for industrial consumers for effective utilization of efficient generation portfolio coupled with the associated socio-economic benefits of industrial demand growth.

APP