Govt cuts down subsidy on electricity by Rs 1.50 per unit

ISLAMABAD: The Federal government has cut down subsidy on electricity by the average of Rs1.50 per unit.
According to the sources at the Ministry of Water and Power, in order to cut the subsidy an Electricity Equalization Surcharge of Rs1.50 per unit has been imposed.
With this development, the electricity consumers with the exception of those of K-Electric have been deprived of Rs27 billion annual subsidy.
But, this may not necessarily affect the consumers, as the National Electric Power Regulatory Authority (NEPRA) had proposed to reduce electricity tariff Rs1.50 but the Ministry of Water and Power blocked the provision of relief by imposing a new surcharge.
The Electricity Equalization Surcharge has been made applicable with effect from October 1 and it will remain imposed till July 31, 2015. According to the spokesman of the ministry, the notification to this effect has been issued.
The spokesman, however, said that the power consumers will have to face no impact as the NEPRA’s proposed reduction in power tariff of Rs1.50 per unit and the same amount of Electricity Equalization Surcharge will cancel out each other.