Rs473bn subsidy to power sector given last year despite economic crunch

Rs473bn subsidy to power sector given last year despite economic crunch.

Federal Minister for Energy Omar Ayub stated this, while addressing a press conference today (Thursday).

Minster for Planning and Development Asad Umer and Special Assistant to Prime Minister for Power Tabish Gohar accompanied him.

Rs473bn subsidy to power sector given last year

Omar Ayub said that said the government had paid Rs 473 billion subsidy to power sector during last year.

He highlighted the government gave this subsidy despite economic crunch.

However, he also recalled that the PTI government inherited capacity payments from PML-N government.

He further said the agreements inked during the PML-N government with power sector based on bad intentions and corrupt practices.

The minister said due to these agreements, the increase in electricity tariff was Rs 2.18 but the present government had decided to increase the rates by Rs 1.95 in per unit.

He said that the annual capacity payments to IPPs stood art Rs185 billion in 2013, while Rs 468 billion in 2018.

It stood at Rs 642 billion in 2019, Rs 860 billion in 2020 and would reach Rs 1455 billion in 2023.

“These are the land mines, I am talking about,” he said.

Omar Ayub said that the major reason of the recent power breakdown was technical (earthing) .

Furthermore, he said the government had constituted a high powered investigating committee.

That comprised of of NTDC, NEPRA and ministry and tasked to look into the reasons and to address the issues.

According to a preliminary investigation, six to seven officers/officials have been suspended.

The minister said report when finalised, should be submitted to the Power committee besides sharing with media.

Tabish Gohar

Meanwhile, Special Assistant to Prime Minister (SAPM) on Power, Tabish Gohar, also spoke.

He said the government had taken number of initiatives to bring reduction in circular debt.

He further said due to the initiatives of the present government Rs 1 to Rs 2 per unit would be reduced in prices of electricity in upcoming years adding that government had made agreements with power sectors as per law and regulations.

The SAPM said with coordination of provinces, federal government would take steps to control the electricity theft.

Tabish Gohar said deficiencies of power companies would be improved and their monopoly would be ended in next three to four years.

GTV