Government to provide Rs322bn in power subsidy in FY24

power-subsidy

KARACHI: Federal Minister for Energy Khurram Dastgir on Friday said the government would provide Rs322 billion in tariff differential subsidy (TDS) to power consumers through distribution companies (discos) across the country.

Addressing a press conference along with National Transmission and Dispatch Company Managing Director Rana Jabbar, the minister said that consumers of Karachi would receive Rs171 billion in TDS via KE in the next financial year.

“Moreover, Rs151 billion were allocated in the budget 2023-24 for other parts of the country including Balochistan, Azad Jammu and Kashmir and merged ex-FATA districts,” he informed. The federal government would also provide subsidies to consumers across the country through their respected discos.

“These are budgeted subsidies, which will not affect Pakistan’s ongoing talks with the International Monetary Fund (IMF) for the revival of the stalled loan programme,” the energy minister added.

Speaking about Cyclone Biparjoy and power supply, the minister said that 70 percent of the domestic and industrial consumers did not face load-shedding. Karachi faced a disruption of only 4 hours, which Dastgir attributed to issues in supply of LNG to the power generation units. However, those issue was addressed by the provision of 100mmcfd gas from the national network.

A comprehensive strategy was formulated at the national level for ensuring safety of people and supply of electricity in vulnerable areas due to cyclone Biparjoy on the directives of Prime Minister Shehbaz Sharif.

Over 2,000 personnel from different power distribution companies including GEPCO, LESCO, MEPCO and SEPCO were deployed in southeastern districts of Sindh on emergency basis along with vehicles and necessary equipment, he informed.

Sindh government has extended the fullest cooperation in the regard and close coordination was being maintained among all the stakeholders, while technical teams deployed at generation plants and grid stations were on high alert for ensuring electricity supply.

In response to a query, Dastgir said that KE claimed 70 percent areas of the metropolis were receiving round the clock power supply, while load management was being carried out in 30 percent areas due to issues of low recovery and high line losses.

In order to mitigate electrocution risks during rains and floods, KE has carried out earthing of 100,000 poles. Dastgir urged the newly elected local bodies’ representatives to coordinate with KE to resolve the power theft issues in their respective areas to get uninterrupted electricity supply. The minister said that KE’s long pending issues with the government departments, such as TDC, renewal of GSA with the Sui Southern Gas Company and power dues, would be resolved soon.

“Protection of consumers’ rights and interests was our topmost priority and reorganisation of K-Electric would be done in a transparent and clear manner,” he said, adding that a committee, led by Abbasi, was working to settle the issues between KE, SSGC and the government. “Ninety percent reconciliation has been achieved so far,” the minister informed. “The government is also introducing a policy in the country, under which the power distribution companies (Discos) including KE will be bound to make their load management plan (area-wise load shedding) at PMT level,” he said, adding that this would greatly resolve the grievances of loyal consumers, living in the high-loss areas, but who pay their electricity bills on a regular basis.

To a query about the concerns of Saudi company M/s Aljomaih Power over undue delay in resolution of issues related to KE, the minister said that Prime Minister Shebaz Sharif has constituted a committee under the supervision of Finance Minister Ishaq Dar to sort out the problems.

The energy minister also pointed out that the government recommended closure of markets by 8pm as part of its energy conservation plan, which was approved by the cabinet recently. “Now, it’s the responsibility of the provincial governments to implement the plan,” he added.

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