Govt prepares summary for hike in power tariff

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From Our Correspondent

ISLAMABAD: The federal government has prepared a summary regarding a hike in power tariffs, sources said yesterday. According to sources, the summary has been prepared and is to be approved during a meeting of the Economic Coordination Committee (ECC) scheduled to be chaired by Federal Finance Minister Asad Umar today. While talking to a local news channel, the Finance Minister said that these recommendations have been made by regulators, who warned that if the rates are not increased as per request, the government will face blow of more than Rs.400 billion deficit.

“Recommendations have been made for increase in prices for the years 2016-17 and 2017-18 as per which the price per unit is expected to rise to Rs.3.75,” sources added. “With the recommended rise in power tariff, an additional Rs.400 billion per month is expected to be collected from consumers,” sources added. Last month, the National Electric Power Regulatory Authority (NEPRA) approved an increase of Rs.1.16 per unit in electricity prices. However, the ECC had deferred announcing an increase in the price of electricity.