Flat tariff regime

[ahlam1399]

Massive relief to power consumers on the cardsBy Khalid MustafaISLAMABAD: In a welcoming development, the government is all set to introduce flat tariff regime for electricity consumers having ToD (Time and Day) meters at Rs11.97 per unit for four months of winter reason.It will not only give a substantial relief to masses but also help the government get out of capacity payment trap of Rs849 billion as the idle power projects will also be utilised in the winter season.“We have prepared a summary for ECC and will be taken for approval in next week and the new flat tariff regime will be enforced from November, 2019 to February 2020,” one of the top officials at Power Division told this to The News.At present the electricity consumers having ToD meters are currently experiencing two tariff regimes; one is peak hours tariff and other one is off-peak tariff.“Yes, we are going to offer flat tariff at Rs11.97 to the domestic and commercial consumers using electricity through ToD (Time of Day) meters. In addition, the industrial consumers of B1, B2 will also be extended the flat tariff of Rs11.97 per unit,” Joint Secretary (Power) at Power Division Zargham Eshaq Khan confirmed to The News.The base tariff that Nepra has determined would not be affected and the revenue will also not be affected in the said four months of the winter season. Giving the background of the decision, Mr Khan said that the challenge of the government is to pay mammoth amount of Rs849 billion during this financial year in the head of capacity charges to power plants (IPPs) and when the power plants become idle on account of massive reduction in demand for electricity in winter season, the capacity payment per unit stands at Rs4.94 per unit and when the power projects become operational and the electricity will be used even in winter season at the maximum that will also increase the commercial and industrial activities apart from the raise in electricity consumption in the domestic sector. And this will result in reduction of the capacity payment charges to Rs3.05 per unit that power consumers pay.So the government is going, he said, to abandon ‘electricity save policy’ and encourage the use of electricity at the maximum during winter season. “Since we have too much electricity in the system and during the peak of summer season, the electricity consumption increases to over 25,000MW but in winter season electricity consumption massively tumbles to 12000-14000MW and at time it further decreases to 9,000MW.”Mr Khan further said that the government is going to end the un-serviced capacity in the winter season and will turn into the utilised capacity that is to bring down the per unit capacity payment from Rs4.94 per unit to Rs3.05 per unit. To a question, he said that the total revenue of the power sector stands at Rs1.6 trillion per annum and during the four months of winter season starting from November 2019 to February 2020, the revenue requirement is 35-40 percent of Rs1.6 trillion that will not be affected by extending the flat tariff regime in the said four months to the electricity consumers. “And to cope with the ballooning capacity payment issue, we are going to enforce the flat tariff regime at Rs11.97 per unit in four months of winter season.”He explained saying that the domestic consumers with ToD meters, at present, pay electricity tariff at Rs21 per unit during peak hours (6pm to 10pm or 7pm to 11pm) and Rs18 per unit during off peak hours ( 11pm to 6m). And now under flat tariff regime, they will be paying one tariff Rs11.97 per unit. Similarly, the commercial consumers having ToD meters at present pay the tariff of Rs18 per unit during peak hours and Rs16 per unit during off-peak hours. Now they will be paying flat tariff at Rs11.97 per unit all the time.Talking about the industrial consumers of B1 and B2, Mr Khan elaborated saying that during peak hours their tariff stands at Rs19 per unit and Rs15 per unit during off-peak hours and now they will pay flat tariff at Rs11.97 per unit.http://feeds.feedburner.com/~r/com/cwEr/~4/KpGIvsMCM10

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