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Govt. seeks a hike in power tariff by 12%

Karachi: The government is expected to raise power tariff by 12% for FY12 with approval of the cabinet in order to recover line losses and non-collected electricity bills.

According to Alfalah Securities, the government has figured an amount of PkR 117 bn occurring from line losses and non-collected bills and a hike in power tariff is expected to recover PkR 67 bn while the remaining PkR 50 bn would be compensated as a subsidy by the government. It is also being expected by the committee formed by the government that NEPRA should permit actual losses and 100% fuel adjustment charges in the tariff along with a revision of method by NEPRA used for calculating line losses. The committee is also expected to propose that the tariff adjustment method should be implemented on immediate basis while, connections should be disconnected if bills have not been paid for more than 45 days.

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