Gazette notification for hike in power tariff issued: 20 to 24 percent more increase on cards from March.

ISLAMABAD, October 01, 2009 (Frontier Star): Federal Ministry for Water and Power has formally issued Gazette notification with regard to 6 percent increase in electricity tariff for the quarter started from October 01. The increase in power tariff would be applicable on domestic, commercial and industrial consumers, sources in water and power ministry informed. The Gazette notification has been issued after publishing by Printing Corporation of Pakistan, however, the increase will not be applicable on agriculture tube wells and such domestic users consuming up to 50 units per month. The decision to increase electricity tariff was taken in line with international monetary fund's condition that the country needs to do away with the Rs. 132 billion annual subsidy to the power sector, sources added. Prime Minister Syed Yousuf Raza Gilani approved a summary on Wednesday for 6 percent increase in power tariff. The electricity tariff would be increased up to 20 to 24 percent by March. After 6 percent increase in electricity tariff, the domestic electricity users consuming 100 units per-month would have to pay Rs. 3.48 for per unit instead of Rs. 3.29 per unit. The domestic electricity users consuming 301 to 700 units per-month have to pay Rs. 8.51 for each unit instead of Rs. 8.30 while the domestic electricity users consuming more than 700 units per-month have to pay Rs. 10.60 for consuming each unit instead of Rs. 10, sources added. National Electricity Power Regulatory Authority (NEPRA) and Finance ministry had demanded 30 percent increase in electricity tariff but the Prime Minister rejected the summary and approved 6 percent increase. The increase would add Rs. 38 billion to revenue for the period between October and December, sources added.

(THROUGH ASIA PULSE)