Islamabad (Big Digit) : Caretaker Prime Minister’s Special Instructions Regarding Heavy Electricity Bills
The Caretaker Government is taking effective measures to control the high electricity bills and inflation. Caretaker Prime Minister Anwarul Haq Kakar has issued special instructions for calling an emergency meeting regarding the heavy electricity bills. In an emergency meeting called against the nationwide protest of the people, the meeting was directed to formulate concrete measures to reduce the excess electricity bills during the next 48 hours and to present a road map to the electricity distribution companies to prevent electricity theft. Adjourned till tomorrow. Under the chairmanship of Caretaker Prime Minister Anwarul Haq Kakar, the first round of an emergency meeting on the increase in electricity bills was held on Sunday, in which he was given a detailed briefing on the increase in July electricity bills. Gohar Ejaz, Murtaza Solangi, Adviser to Prime Minister Dr Waqar Masood, Secretary Energy, Chairman WAPDA, Chairman Nepra and other relevant senior officials attended. The meeting was given a detailed briefing on the problems of the electricity sector, details regarding excess bills, electricity theft and measures to be taken to prevent it. The Caretaker Prime Minister said that in the next 48 hours concrete steps should be taken to reduce the excess electricity bills and we will not take any hasty measures which will harm the country. He said that measures will be taken which will not burden the country’s exchequer and provide convenience to the consumers. He said that it is not possible that the common man is in trouble and the bureaucrats and the Prime Minister use free electricity on their taxes.
Anwar-ul-Haq directed that the relevant ministries and related institutions should provide complete details of the officers and institutions receiving free electricity.
He said that I represent the common man, so the cost of electricity in the Prime Minister’s House and Pakistan Secretariat should be kept to a minimum and if the AC in my room has to be switched off, then definitely switch it off.
He said that a detailed consultation with the provincial chief ministers on the implementation of electricity saving measures and the issue of excess bills for July will also be held tomorrow.
The Caretaker Prime Minister further directed that electricity distribution companies should present a road map to prevent electricity theft and electricity sector reforms and short, medium and long term plans should be presented as soon as possible. He adjourned the meeting till tomorrow and directed to prepare and present concrete measures and plans. It should be noted that protests are being held in cities across the country due to the significant increase in electricity rates for the past few days, after which the Caretaker Minister of Energy had called an emergency meeting.
On the other hand, the government has also planned to withdraw the electricity subsidy given to government officials of grade 17 and above of power distribution companies.
Caretaker Information Minister Murtaza Solangi met Secretary Power Division Rashid Mahmood Langriyal and discussed the issue of electricity bills. The information minister confirmed that the free electricity facility given to DISCOS officers will be discontinued, the summary of withdrawal of free electricity facility to officers of grade 17 and above will be presented in the next cabinet meeting. The information minister was informed that the increase in electricity rates mainly affected consumers consuming more than 400 units per month and there was no change in tariff for 63.5 per cent domestic consumers.It should be noted that in recent days the prices of petrol have increased in the global market and the value of the rupee has also decreased, resulting in economic difficulties. The bills have made life miserable for the people, now it has gone up to Rs 50 per unit. How this lightning bomb has exploded on our heads. When you know the cause of a problem, then you understand the problem.The previous coalition government of Pakistan hiked electricity rates, after which the basic electricity tariff was increased from Rs 24 82 paisa to Rs 29 78 paisa. Done. In such a situation, most Pakistanis are worried about how they will pay their electricity bills in the coming days.
It should be noted that the National Electric Power Regulatory Authority (NEPRA) has increased the price of electricity by 4 rupees 96 paise per unit. With this increase, a unit that was costing 24 rupees 82 paise will now cost the same 29 rupees 78 paise.
That is, if your house uses 400 units per month, then earlier your bill would come to around twelve to thirteen thousand including tax, but according to the new prices, now the same bill can come to around sixteen to seventeen thousand including tax.
With regard to the decision of the federal government to increase the price of electricity, it says that consumers who use electricity from 1 to 100 units per month will have an electricity tariff of 16 rupees 48 paise after an increase of 3 rupees. The unit price will increase with higher power consumption.
As the tariff from 100 to 200 units will be 22 rupees 95 paisa after an increase of four rupees, while the tariff from 201 to 300 units per month will be 27 rupees 14 paisa after an increase of five rupees.
A few months ago, it was said by the government of Pakistan that relief is being given to household consumers consuming up to 300 units of electricity, while many consumers told us that they did not get any such relief, but there were some consumers who Claimed that they got relief in electricity bill for a couple of months.
After the new electricity prices, the monthly tariff for 301 to 400 units will be Rs. 32.3 paise per unit after an increase of Rs. 6.50 paise, while after changing the slab of 401 to 500 units, it will be Rs. 35.24 paise after an increase of Rs. 7.50 paise.
Users of 501 to 600 units will get a tariff of Rs 37 80 paisa per unit, while those who use more than 700 units per month will get a tariff of Rs 42 72 paisa per unit.
Note that all these prices are exclusive of taxes. According to experts, users of 700 or more units per month could end up paying around Rs 50 per unit, including all taxes.
If you look at your electricity bill, there are various types of taxes added to it. In which GST goes to FBR while e-Duty goes to provincial government. There is a TV fee and a SUR, a surcharge, which is added to the bill as the dollar and oil prices rise or fall.
Most of Pakistan’s electricity is generated from oil and Pakistan imports most of its oil, which is bought in dollars. Therefore, fluctuations in electricity prices also occur due to low or high value of rupee. Electricity theft is also a big problem in Pakistan. Apart from this, there are many government departments, which do not pay their electricity dues.
The price of electricity has increased, the question is how to reduce the electricity bill. Experts say that consumers should first take care not to use any machine during peak hours that consumes a lot of electricity. Like iron, washing machine, water motor, etc. Also, use alternatives to electrical items. For example, washing clothes by hand instead of using kitchen machines like chopper or washing machine. If using AC, make sure to run it at 26. Keep unnecessary lights and fans off to save electricity. This will also make a significant difference on the electricity bill. Remember that the price of electricity is mainly determined by two things. The first is the cost of fuel as the country has to depend on furnace oil, diesel, coal or other imported fuels from abroad to generate electricity. The second is the fluctuation in the value of the dollar. The market determines the value of the dollar.
One of the main reasons for the increase in current prices is the conditions set by the IMF during the Imran Khan regime and the granting of economic autonomy to the State Bank of Pakistan. Now the value of the dollar is determined by the open market. Due to the actions of the Imran Khan government, the control of the government of Pakistan over the State Bank has been limited as in the past. If artificially the government tries to control the value of the dollar, it results in increasing the burden on Pakistan’s foreign exchange reserves, which creates more economic problems for the country. It should be remembered that the IMF has also imposed a condition that the government will not artificially control the value of the dollar and the value of the dollar will be determined by the open market. The two factors that determine the price of electricity, i.e. imported fuel and the value of the dollar, are not under the control of the Government of Pakistan. In this situation, alternative sources of energy can play an important role in providing relief to the people, but the journey towards promoting the use of alternative sources of energy in Pakistan has just begun. In the coalition government of former Prime Minister Shehbaz Sharif, the plan to add 10,000 megawatts of additional electricity from solar energy to the national grid was started, which is still being implemented. It will take time to see results. Similarly, one aspect is payments to private power plants (IPPs). It also has a very important issue of fixed payments regardless of power generation. These payments are made in dollars. Another major problem is the theft of electricity, which is disguised in a confusing term of ‘line losses’, but in simple words, it is electricity theft, i.e. the dishonesty of the dishonest is punished by the honest electricity consumers. Have to suffer. Consumers who come under the definition of ‘Line Losses’ are those who do not pay their electricity bills in full or pay their bills late or pay their bills in installments. This definition also includes those who steal electricity through swindling or other tactics and the cost is borne by consumers who regularly and honestly pay their electricity bills on a monthly basis. Due to these factors, the cost of generating electricity is not recovered in full and the deficit of the power sector increases which is now described by another term “revolving debt”. The interesting fact is that 75% of electricity is used by domestic consumers. The electricity used for industry, trade and business activities promotes business activities, if the use of this electricity increases, it benefits the country’s economy, but as a result of the use of electricity by domestic consumers, they have to pay more electricity. Bills arrive and become a source of public anxiety. Considering all this situation, a good strategy can be that the household consumers adopt the habit of efficient use of electricity. Until the current power crisis in the country is improved by alternative sources of energy, during this period we at the national level need to adopt the methods adopted in other developed countries of the world. People, institutions and businesses in the developed countries of the world use more and more sunlight. Business is done in daylight and most of the activities of daily life are done in sunlight. In our country, there is an unfortunate trend of keeping shops open late at night and wasting daylight. In view of the energy crisis, we also need to change our habits and lifestyle. The highest consumption of electricity is between 5 pm and 11 pm. Household consumers should not use high-powered electrical appliances such as AC, iron, motor, etc. during these evening hours so that the electricity bill of household consumers does not increase and the consumption also decreases. can be kept open. A good suggestion would also be to keep the existing bakeries and drug stores in the same area open on a weekly basis, ie if there are ten shops in the same area, one shop should be open at night and the others should be closed. This process can be done in order of days so that the people do not suffer and electricity can also be saved. By opening markets and shops early in the morning and closing early in the evening, considerable electricity can be saved, while billions of dollars worth of foreign exchange spent on imported fuel can also be saved. There is also a suggestion that electricity distribution companies (discos) should be privatized. In this regard, examples are given of PTCL and ex-TIP. Before the privatization of this sector, installing a telephone was the most difficult task, but since the privatization of this sector and more companies from around the world joined this sector, installing a phone connection has become the easiest task and the prices have come down significantly. Following the same example, privatization of power sector is also the need of the hour. Privatization of this sector will result in an environment of competition which will benefit the consumers while eliminating the convenience of electricity thieves. Electricity rates were increased by the previous coalition government of Pakistan, after which the basic electricity tariff was increased from Rs 24 82 paisa to Rs 29 78 paisa.
It should be noted that the National Electric Power Regulatory Authority (NEPRA) has increased the price of electricity by 4 rupees 96 paise per unit. With this increase, a unit that was costing 24 rupees 82 paise will now cost the same 29 rupees 78 paise.
That is, if your house uses 400 units per month, then your bill used to be around 12 to 13 thousand including tax, but according to the new prices, now the same bill can be around 16 to 17 thousand including tax. With regard to the decision to increase the price of electricity, it is said that customers who use electricity from one to 100 units per month will have an electricity tariff of Rs 16 48 paise after an increase of Rs 3. will increase with more use. A few months ago, it was said by the government of Pakistan that relief is being given to household consumers consuming up to 300 units of electricity, while many consumers told us that they did not get any such relief, but there were some consumers who Claimed that they got relief in electricity bill for a couple of months.
After the new electricity prices, the monthly tariff for 301 to 400 units will be Rs. 32.3 paise per unit after an increase of Rs. 6.50 paise, while after changing the slab of 401 to 500 units, it will be Rs. 35.24 paise after an increase of Rs. 7.50 paise. Will have to.
Users of 501 to 600 units will get a tariff of Rs 37 80 paisa per unit, while those who use more than 700 units per month will get a tariff of Rs 42 72 paisa per unit.
Note that all these prices are exclusive of taxes. According to experts, users of 700 or more units per month could end up paying around Rs 50 per unit, including all taxes.
If you look at your electricity bill, there are various types of taxes added to it. In which GST goes to FBR while e-Duty goes to provincial government. There is a TV fee and a SUR, a surcharge, which is added to the bill as the dollar and oil prices rise or fall.
Most of Pakistan’s electricity is generated from oil and Pakistan imports most of its oil, which is bought in dollars. Therefore, fluctuations in electricity prices also occur due to low or high value of rupee. Electricity theft is also a big problem in Pakistan. Apart from this, there are many government departments, which do not pay their electricity dues.
The price of electricity has increased, the question is how to reduce the electricity bill. Experts say that shoppers should first take care not to use any machine that consumes a lot of electricity during peak hours. Like iron, washing machine, water motor, etc. Also, use alternatives to electrical items. For example, washing clothes by hand instead of using kitchen machines like chopper or washing machine. If using AC, make sure to run it at 26. Turn off unnecessary lights and fans to save electricity Preparing to put an additional burden of 144 billion 69 crores on electricity consumers, the quarterly adjustment request for April to June 2023 has been submitted to Nepra.
Electricity distribution companies have filed a request for quarterly adjustment for April to June 2022-23, electricity distribution companies have requested to recover 122 billion 41 crore rupees in terms of capacity charges, electricity distribution companies have incurred losses. It has also requested to receive 7 billion 35 crore rupees in this regard.
