Power tariff rebate to be recovered: Miftah

Finance Minister Miftah Ismail on Wednesday cleared the air about electricity relief to the consumers of 300 units a month on account of the fuel cost adjustment (FCA) for the month of June -- being recovered in coming months. “It has been deferred,” briefly replied Miftah while responding to a question whether PM Shehbaz had deferred or waived off the Rs9.90 per unit FCA. He was addressing a news conference alongside Defence Minister Khawaja Asif. Last week, the PM’s Office had announced that the premier had waived off the one-time Rs9.90 per unit electricity surcharge from consumers of up to 300 units. The surcharge was on account of expensive fuel-based electricity produced in June. However, it will be recovered in next six months’ electricity bills. “The government does not have fiscal space to waive off the Rs9.90 per unit electricity surcharge as that will require a subsidy of Rs30 billion,” according to an official of the Power Division. After countrywide protests against the inflated electricity bills in August because of a Rs7 per unit increase in base tariffs; ending last slab lower rate benefit; and Rs9.90 per unit one-time monthly FCA; the prime minister had paused the recovery of the surcharge for one month and staggered the amount over six months.