New proposal to end tariff differential

Sunday, September 23, 2012 - Karachi—The Planning Commission has proposed a revised tariff regime to eliminate tariff differential, subsidy and improved tariff collection with necessary legislations for penalties to arrest the power sector losses that have mounted to 21 percent, sources said.

The implementation plan of framework for growth strategy of the Planning Commission has laid its prime emphasis on improved governance to attain energy security through reformed energy sector institutions for improved performance and comprehensive action plan to reduce losses, control theft and improve efficiency.

Besides, amended NEPRA and Conservation Acts, ensuring recovery of cost could prevent recurrence of the circular debt, they said. The implementation of the growth strategy as per the plan would result in increased supply of electricity and gas in efficient, affordable and friendly manner to spur and sustain growth, according to the plan.

The growth strategy aims at reducing the electricity sector losses to 16 percent, elimination of power outages, reduction in gas distribution losses to five percent and elimination of gas outages by 2015-16.

The commission’s plan noted that better guidance and enforcement of rules and regulations through revamped generation companies and Water and Power Development Authority’s hydel, privatisation of distribution companies and induction of professional management could result in fully corporatised and privatised energy sector.