Flat Cost Regime: Relief to customers on cards as uniform electricity rates to be introduced

At the moment, electricity consumers have two cost regimes, one is at peak hours and the other is at off-peak hours.

Flat-Cost

The government has decided to introduce a flat-rate (flat cost) regime for electricity consumers having ToD (Time and Day) meters at Rs.11.97 per unit for the four months of winter. This change will benefit consumers and the government to tackle the ‘capacity’ payment trap of Rs. 849 billion as the power plants that have been left idle will also be used during winters.

“We have prepared a summary for ECC and will be taken for approval in next week and the new flat tariff regime will be enforced from November 2019 to February 2020,” – said one of the top officials at Power Division while talking to The News.

At the moment, electricity consumers have two cost regimes, one is at peak hours and the other is at off-peak hours.

“Yes, we are going to offer flat tariff at Rs11.97 to the domestic and commercial consumers using electricity through ToD (Time of Day) meters. In addition, the industrial consumers of B1, B2 will also be extended the flat tariff of Rs11.97 per unit,” – said Zargham Eshaq Khan, Joint Secretary (Power) at Power Division.

However, the base tariff set by Nepra will be left undisturbed and the revenue won’t change in the four months of winter also.

While talking about the reform, Imran Khan stated that the government’s challenge is to pay a total amount of Rs.849 billion during this financial year. When the power plants are left unused due to reduced use in electricity in winters, the capacity cost per unit is Rs.4.94 per unit.

And when power projects that have been left unused are made operational, the electricity will be used more in winters, this will also increase use in commercial and industrial activities. And hence, capacity payment charges will be reduced to Rs.3.05 per unit that the consumers pay.


Also See: In A First, Government Plans To Introduce Flat Electricity Rate For Winter

What are your views on this? Share with us in the comments bar below.


Featured Content⭐

>