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Debt servicing surcharge not to burden electricity consumers: Ministry of Water and Power

Islamabad, October 20, 2014 (PPI-OT): A Spokesman of the Ministry of Water and Power while clarifying the impression created by a news item published in a section of media regarding power tariff increase on behest of IMF and burdening the consumers, has said that in fact the government has taken a prudent decision by not burdening the consumers and adjusting the negative fuel price adjustment with surcharge for debt servicing on actual basis for revenue requirement of the Distribution companies.

The Spokesman while elaborating the increase and decrease impact of tariff said that the government in line with ECC decision of 27th May 2014 and after getting NEPRA go ahead for recovering debt service had imposed a surcharge of 29 paisa while at the same time the tariff would be decreased on account of PFA by the same amount i.e. 29 paisa. He said that practically there will be no additional burden on the consumers.

The Spokesman further clarified that a surcharge is a temporary arrangement for certain period and not a permanent component of the tariff, therefore it will not affect the tariff after a specific period.

Regarding the impression created that the surcharge has been imposed to salvage talks with IMF, the Spokesman said that it was long pending issue and the decision has been taken after a detailed deliberation at different levels. It was infact the result of these deliberation that the surcharge was notified at a time when there will be no additional burden on consumers, he added.

The Spokesman said that during talks with IMF normally all matters relating to economy come under discussion however it does not imply that any step taken by government by its own initiative though a proper deliberative process is a requirement of IMF.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +92-51-9252323 and +92-51-9252324
Fax: +92-51-9252325 and +92-51-9252326
Email: piopid@gmail.com

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