Minister for Power Sardar Awais Ahmad Khan Leghari has once again talked about negotiations with Independent Power Producers (IPPs) for revision of accords with them to rein in unsustainable electricity tariffs. In an interview to Reuters, he also acknowledged that the existing price structure of electricity was not sustainable, adding ‘there is a clear understanding on both sides that status quo can’t be maintained’.
The re-confirmation of process of dialogue with the IPPs is a positive development yet there are clear indications that government is not according it required priority and urgency. All types of consumers have lost patience with prevailing tariff, which, surprisingly, keeps on rising despite exchange rate stability and downward revision in prices of the POL products by government — the two factors that contributed significantly to repeated hikes in electricity tariff. People gave vent to their feelings during protests and sit-ins called by Jamaat-i-Islami (JI), which temporarily halted its campaign on assurances by government to come out with a satisfactory solution within weeks but nothing substantial has transpired despite lapse of one clear month. Therefore, there is a dire need to expedite the process of dialogue and take it to fruition as per aspirations of the people. This is important in view of the fact that government leaders acknowledge that existing electricity tariff was highest in the region and that it has serious consequences for domestic as well as industrial, commercial and agricultural sectors. There is no official version of talks so far held with the IPPs but reports trickling down in media indicate IPPs are not willing to concede much, claiming their share of capacity charges was negligible and that major share goes to public sector and Chinese plants. If true, it shows government was either not prepared with necessary facts and figures or not willing to confront IPPs with concrete evidence because of vested interests. Another issue at the core of unbearable burden of electricity bills is unfair provision under which a consumer is charged with highest rate of tariff for consecutive six months (irrespective of the monthly consumption) if it crosses the consumption limit of 200 units with one unit for just one month.
A substantial relief can be provided to consumers if this unjust provision is withdrawn and this should be done without loss of further time.
