S. M. Tanveer urges govt. to announce Rs26/kWh tariff without delay

LAHORE: Patron-in-Chief of the United Business Group (UBG) has urged the Prime Minister, Federal Minister for Energy, and the Special Investment Facilitation Committee (SIFC) to announce a reduced electricity tariff of Rs26 per kWh for consumers at the earliest. This move is crucial in the wake of the government’s action against Independent Power Producers (IPPs).

According to him, the electricity tariff has already been reduced from Rs46 per kWh to Rs34 per kWh, and the industry is now expecting a further reduction to Rs26 per kWh to maintain the productivity of industrial sectors.

Tanveer pointed out that the government has officially termination and tariff revision of 27 contracts with IPPs, and an inquiry against windmill projects is currently underway. The government would secure about Rs1.571 trillion in savings in future payments to IPPs, which is needed to be passed on to consumers forthwith, he stressed.

He dispelled the impression that the process is being slowed down, stating that the FPCCI leadership is in close contact with the concerned authorities and is hopeful that the electricity tariff will be reduced to Rs26 per kWh by next month.

The Federal Minister has also agreed that the elimination of Rs1.1 trillion capacity charges against 120 crore units produced in the country would reduce the tariff to Rs11.50, Tanveer added.

He said the industry is facing an unprecedented crisis due to exorbitant electricity tariffs, and immediate relief is necessary, Tanveer emphasized. The current tariff has made it challenging for businesses to operate, and if the situation persists, widespread closure of mills and industries will take place, affecting millions of workers, he apprehended.

Tanveer has urged the government to take immediate action and announce the reduced tariff to prevent the collapse of industries and protect the livelihoods of millions of workers dependent on them.