PML-N govt responsible for increase in power tariff: Omar Ayub

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Umar Ayub addressing press conference- File photo

ISLAMABAD: Power Minister Omar Ayub Khan said Thursday the country's previous government — led by the Pakistan Muslim League-Nawaz (PML-N) — was responsible for the latest increase in electricity tariff as it signed expensive power purchase agreements with private companies.

Addressing a press conference, Omar Ayub said the PML-N government did not increase tariff for 18 months before the election. “I repeatedly said in the National Assembly, Senate, Standing Committees, and media that PML-N was responsible for the tariff hikes," he said.

The minister said the Economic Coordination Committee (ECC) had approved the power tariff increase of Rs0.30 per unit and the Cabinet would ratify it in its upcoming meeting.

Ayub said the tariff hike would not have any financial impact on the 75 percent of consumers who use less than 300 units of electricity a month.

He said the National Electric Power Regulatory Authority (NEPRA) had increased the power tariff by Rs0.83 per unit to pay six-month capacity charges of thermal, coal, and liquefied natural gas (LNG) power plants and owing to a hike in the interest rates and a change in the dollar exchange rate.

Ayub explained the tariff increase was upped from Rs0.53 to Rs0.83 a unit to shift the burden to well-to-do consumers and shield people who use less than 300 units in line with Prime Minister Imran Khan's instructions.

The premier has always stressed that relief should be provided to the working class and poor people, the minister added, noting that the government was trying to reduce the circular debt.

During the PML-N government, he said, the circular debt was rising by Rs38 billion per month. He said the Pakistan Tehreek-e-Insaf (PTI) government, however, reduced the circular debt to Rs10-12 billion per month.

Ayub said the ministry of power saved Rs84 billion by improving efficiency in the power sector and stopping electricity theft.