ISLAMABAD: In a rare admission on the floor of the parliament, the Pakistan government has said that electricity charges in the country were higher than what consumers paid for in the region including India, Sri Lanka and Bangladesh.
In a written reply to a question raised by Nafeesa Khattak of Pakistan Tehreek Insaf, Water and Power Minister Khawaja Asif informed the National Assembly about the reasons for higher electricity tariff.
“In Pakistan, the tariff charged to consumers is based on generation mix, structure and transmission cost and distribution losses suffered by each utility,” Water and Power Minister Asif said.
The cheapest source of power generation is hydel which is not sufficient to meet the ever-increasing demand of electricity in the country. Therefore, the minister said, the demand was mostly met through thermal generation. Although gas is another cheaper source for power generation, it is also not available as per requirement of country’s power system.
Resultantly, costly furnace oil led to a significant increase in power tariff, the minister said, adding that price of furnace, which was Rs20,604 per tonne in 2006-07, increased to Rs72,134 in 2013-14.