August 24, 2008

another bolt is about to strike

The authorities at the helm of affairs have decided to increase the power tariff once again by 60%. This hike will be over and above the 16 percent raise already passed on to the consumers with the withdrawal of GST exemption. So my dearer poorer fellow countrymen, behold, this tariff is going to be made effective shortly. The recent development in the political arena regarding presidential elections may delay the imposition till the end of Ramadan. In my opinion the electricity bolt will be striking after eid making it to come into action in back dates.

The Prime Minister chaired the meeting to review power sector. Finance Minister Naveed Qamar, Minister for Water and Power Pervez Ashraf, Minister for Food & Agriculture Nazar Muhammad Gondal, Planning Commission Deputy Chairman, Secretary, Water and Power, Secretary, Finance, Nepra Chairman, Secretary, Minfal and Acting Secretary Petroleum attended the meeting (countrymen these are the culprits).

The power tariff would touch Rs 10 per unit after the upward revision. It would be a hefty increase targeted to remove Pepco's growing financial difficulties. Vested interests of cavemen using 50 units will be protected who will be using this concession to light bulbs for search their paraphernalia to inscribe some artwork on the walls aka writing on the wall.

It was explained to the Prime Minister that the issue of circular debt could not be resolved until power tariff was revised as per Nepra's determinations, which he agreed to as he usually does.

Wapda has to make payments to Independent Powers Producers, which were threatening to shut down their power plants because of non-payment. Government cannot allow IPPs to invoke sovereign guarantees as overdue amounts would be cleared by the Pepco through this increase in tariffs. Pakistan has to survive as a normal country which is also in favor of IPPs especially oil fired ones.

Someone in the very near past told us that IPPs are not operating at their full capacity. He was right my dear countrymen.

further details are available:
NEPRA Revised Tariff

detailed report

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