Instead of free electricity, the government employees will receive an allowance
ISLAMABAD: On Saturday, the government declared the discontinuation of electricity subsidies for government employees at or above Grade 17.
Secretary Power, Rashid Langrial, announced during a press briefing that government employees above Grade 17 would receive an allowance instead of free electricity. He also disclosed that a formal proposal on this matter would likely be presented to the cabinet soon.
In addition, Langrial emphasized that Nepra, not the government, is responsible for determining tariffs. Pricing decisions hinge on variables like fuel costs, currency rates, and loan interest rates, any of which increasing prompts a tariff adjustment. Increased usage leads to decreased capacity costs, resulting in rate reduction.
Regarding the fiscal outlook, the secretary power pointed out that the projected baseline for the next year’s dollar rate is Rs 286, despite the current elevated rate. He highlighted a substantial allocation of Rs 2 trillion for electricity procurement in the upcoming year.
Among the 30.5 million consumers, about 63 percent fall within the up-to-200-unit usage bracket, and only 4 million possess air conditioners.
Langrial further revealed that the Rs 8.92 per unit tax aligns with IMF conditions. Additionally, there is an annual requirement of Rs 177 billion to service IPP loans. The gap between annual revenue and expenditure is Rs 976 billion, supplemented by government support.
He underlined the pervasive issue of electricity theft in areas like Azad Kashmir, FATA, and Quetta. Even affluent individuals in Karachi receive a 10-rupee subsidy per unit. Shockingly, electricity theft is causing a loss of Rs 201 billion.
