AS people were eagerly waiting for the Prime Minister to announce a substantial cut in the power tariff on the auspicious occasion of Pakistan Day, Shehbaz Sharif instead only chaired a meeting to discuss energy issues and confined himself to making solacing remarks.
Without offering any explanation as to what hinders fulfillment of the pledges made earlier in this regard, he reiterated the same old statement that a package was being formulated to reduce electricity prices, which would be announced ‘soon’ to provide ‘further’ relief to consumers.
Similarly, instead of adopting a clear stance on the revised solar policy of the Government, which has widely been rejected by all segments of the society, the PM thought it appropriate to issue directions to the authorities concerned to remove ambiguities through ‘facts and figures’, meaning thereby to defend an indefensible move.
The illogically high power tariff is a major factor behind rising prices and the economic woes of the people.
There-fore, its revision should have been a priority for the government.
Regrettably, however, the authorities have not moved beyond rhetoric on this sensitive issue, despite the passage of a year.
A reduction in tariff was due after the government successfully concluded negotiations with a number of Independent Power Producers (IPPs) on the controversial capacity payments.
Such expectations gained credibility when almost all segments of media (surely on the basis of leaked information) reported that the Prime Minister will announce the much-delayed relief on March 23.
The government also justified denial of relief in the prices of petroleum products for the ongoing fortnightly arguing that it will be a trade off for substantial relief in the prices of electricity.
On this assumption, the petroleum levy was jacked up by Rs.10 per litre but the promised revision of power rates has been deferred to ‘soon’.
The question arises as to why the benefit of lower oil prices in the international market was not passed on to the Pakistani consumers if there was no substantial plan to reduce the power tariff.
Media reports also suggest that the government has not received a nod from the International Monetary Fund (IMF) for the purpose and that in case the authorities were able to convince the creditor for a revision it will be up to Rs.5 a unit at the maximum and not Rs.8 per unit as was originally publicized.
To rub salt in the wound, the government uses the term of ‘further’ reduction in tariff, knowing full well that its so-called winter package is a ploy to sell costly power to consumers as reduced rates are applicable on additional consumption of units during the lean season.
The Prime Minister has also been quoted as saying in the meeting that there was no change in the government’s solarisation policy and priority but at the same time he directed officials concerned to address ‘confusion’ over the policy through facts and figures.
There is absolutely no confusion and criticism of the new policy as approved by the Economic Coordination Committee of the Cabinet (ECC) is totally justifiable.
Governments take lead to promote innovations but the new policy is effectively aimed at discouraging people to seek solar solutions to their energy woes.
How can you justify purchase of roof-top electricity at Rs.10 a unit and sell your grid electricity at Rs.68 a unit?
It is strange that on the one hand the Government is not willing to reduce its repressive electricity tariff and on the other hand it is discouraging the option of cheaper solar power for individuals and families.
There are clear contradictions in the energy policy of the Government, which would complicate the situation in the sector if not removed in a fair and transparent manner.
The Government should reduce electricity tariff forthwith and also scrap the new solar policy, which is evidently anti-consumer and anti-technology.
