Rs151 billion ‘subsidy’ to shield power users from line losses
In a bid to offset the burden shouldered by power consumers due to the line losses of distribution companies (Discos), the government has decided to introduce a ‘budgeted’ subsidy to the tune of Rs151 billion to provide relief to customers across the country, except Karachi. For the port city, however, a Rs315bn package has been prepared that is aimed at making tariffs uniform by providing K-Electric billions of rupees in tariff differential subsidy (TDS), which would bring the cost of electricity in the provincial capital of Sindh on a par with the rest of the country. The entire relief package, all set to be introduced in the upcoming fiscal year, is worth Rs894bn and also includes payments of billions of rupees to Independent Power Producers (IPPs). In a press conference on Monday, Power Minister Khurram Dastgir said that power distribution companies based in Lahore, Islamabad, Gujranwala, Faisalabad, Multan, Sukkur, Hyderabad, Quetta, and Peshawar would cumulatively get Rs151bn in subsidy to overcome their line losses and other issues.