Govt raises electricity tarrif by 1.95 rupees per unit

January 22, 2021 (MLN): The government has increased electricity tarrif by 1.95 rupees per unit against the proposed raise of 2.18 rupees per unit, due to the burden that capacity charges will reach to 1,455 billion rupees by the end of 2023, Minister for Power Division Omar Ayub announced on Thursday.

Addressing a news conference along with Planning Minister Asad Omar and Prime Minister's Special Assistant on Power Tabish Gohar in Islamabad, he said despite the difficult economic situation, the government granted subsidy of 473 billion rupees to the power sector and invested 73 billion rupees in distribution system to ensure provision of uninterrupted electricity to people.

Meanwhile, Asad Umar said that economic indicators were showing significant improvement, especially the large-scale manufacturing which witnessed an overall surge of 15 percent in November last year.

He said 10 out of 15 export sectors are showing upward trajectory in overall economic landscape of the country.

The Planning Minister also said that due to the government's incentive of industrial tariff, the consumption of electricty by industry has increased by eight percent.

Tabish Gauhar said the government has worked out new agreements with IPPs to reduce financial burden on the energy sector.

Copyright Mettis Link News