Options to cut power costs being mulled

Without disclosing the total outstanding electricity bills against the public and private sector, caretaker Minister for Power Muhammad Ali has said the electricity costs will be reduced through lengthening the repayment tenor of debt and improving energy mix to renewables and Thar coal. Speaking to reporters on Monday, the minister said the government was making up mind to give out all the 10 distribution companies of ex-Wapda to the private sector on Long-Term Concession Agreement (LTCA) for 20-25 years, but a final decision would be taken by the federal cabinet as to which of three options to follow, including giving Discos to the respective provinces and their outright privatisation. Responding to a question, Mr Ali, who also holds the portfolio of petroleum division, said the people would face gas loadshedding in coming winters, although maximum efforts would be made to ensure that shortage should not exceed that of the last year. Also, gas prices would be increased very soon, but it would be ensured that 60 per cent “poor” consumers are not burdened more than Rs500 per month. However, he added, gas prices for big consumers would definitely go up significantly as the product imported at $13.5 per unit could not be sold at $1.5 at home, resulting in a loss of over Rs350 billion annually to gas companies.