IN the backdrop of consistent reports that the Government has prepared a plan to borrow money from commercial banks to retire circular debt and the loan will be repaid by consumers, Minister for Energy Sardar Awais Ahmad Khan Leghari has held out a categorical assurance that no new surcharge will be imposed on power consumers.
He said the Government is in talks with the commercial banks to borrow a loan of Rs1,200 billion, which will be paid in 5-6 years through the existing surcharge of Rs2.83 per unit on electricity bills.
This is a welcome clarification as earlier reports indicated the Government was proposing Rs.2.83 per unit additional financial surcharge on electricity for the next five years to get rid of the circular debt.
Not only this but the Minister also clarified that the International Monetary Fund (IMF) has not rejected a proposal of the Government to lower taxes on electricity bills to provide relief to the people.
This means consumers can expect significant relief once the ongoing process of revision of contracts with the Independent Power Producers (IPPs) is complete.
It is important that the Government should review a host of levies on the bill, which are more than the original cost of the electricity.
The Government is also introducing a new solar panel policy envisaging that the grid will purchase electricity from newly installed rooftop solar panels at a rate of Rs9.50 to Rs10 per unit as against the current rate of Rs.27 a unit.
As more and more consumers are shifting to solar, the Government will save hugely by purchasing electricity at lower rates and hopefully this relief will also be passed on to the grid consumers.
