Power consumers to pay price for Rs50bn loan

ISLAMABAD: The government is all set to impose another surcharge of 50 paisa per unit on consumers with the approval of Nepra for a new loan of Rs 50 billion to be arranged from commercial banks and parked in PHPL books, well-informed sources told Business Recorder.

The government has already raised Rs 80 billion from banks to pay off liabilities of power sector whereas Rs 50 billion has been arranged by the federal government to save the power sector from total collapse.

The sources said, the financial position of power sector is still at a critical level due to various reasons, including regulatory benchmark performance both in terms of losses and recovery, non-availability of subsidy, detail determination of tariff which has now been notified but whose affect will start showing up in next few months. Moreover, higher energy sale due to significant increase in generation base has also contributed to buildup of circular debt. This was discussed in a meeting held in the office of the Finance Minister on May 22,2018 wherein it was decided to seek another loan for the power sector, as no further fiscal space is available to provide support to power sector under budgetary support head.

Published in Business Recorder, 25th May, 2018