Textile exporters on Wednesday urged the government to bound electricity
distributors to charge up to 7.5 cents/kilowatt hour (kWh) from the zerorated
industrial consumers.
Jawed Bilwani, chairman of Pakistan Hosiery Manufacturers and Exporters
Association (PHMA) said electricity providers across Pakistan are charging
around 8.7 to 9.1 cents/kWh from the industrial consumers “in
contravention to the government’s approved policy and subsidised electricity
tariff net rate of 7.5 cents/kWh”.
In January, the power division of the ministry energy revised down
electricity tariffs for zero-rated industrial consumers up to 7.5 cents/kWh to
facilitate exports. In March last year, the federal government notified the
electricity tariff for ex-Water and Power Development Authority distribution
companies (XWDISCOs), including fuel price adjustment mechanism.
“In order to further rationalise the payments for zero rated industrial
consumer, XWDISCOs and K-Electric are to receive from such zero rated
industrial consumer per above, it is hereby notified that payment from such
zero rated industrial consumer shall be reduced up to the rate of 7.5 cent
/kWh (inclusive of abovementioned special relief package),” the division
said.
“For billing purpose of zero rated industrial consumer the dollar exchange
rate will be considered as the National Bank day-end dollar sale rate on the
last working day of preceding month.
The difference between the relevant payment due from such zero-rated
industrial consumer… shall be paid to XWDISCOs and K-Electric by the
federal government per the notification for rationalisation of process of
payment of subsidy.”
Faisalabad Electric Supply Company (FESCO) charged the highest
$0.091/unit from industrial consumers in January bill, according to PHMA’s
calculation. That was followed by K-Electric and Lahore Electric Supply
Company ($0.087) and Gujranwala Electric Supply Company ($0.086).Bilwani urged Adviser to the Prime Minister on Commerce and Textile
Industry to intervene in the matter, take it up with the power division for
compliance and enforce the subsidised rates for five zero-rated export
sectors up to 7.5 cents/kWh.
Source: The Daily Times, Pakistan Friday, 22 February 2019