Power tar­iff in­crease taken back

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On the di­rec­tions of Prime Min­is­ter Nawaz Sharif, the gov­ern­ment has de­cided not to bur­den elec­tric­ity con­sumers with the new tar­iff for the year 2013-14 as de­ter­mined by the Na­tional Elec­tric Power Reg­u­la­tory Au­thor­ity (Nepra).

The decision has been taken by the prime min­is­ter to pro­vide re­lief to con­sumers, spe­cially do­mes­tic con­sumers. Power gen­er­a­tion in the coun­try is pre­dom­i­nately run on ex­pen­sive fuel which re­sults in a higher gen­er­a­tion cost and higher tar­iff to be paid by the end con­sumers. The gov­ern­ment is mak­ing all ef­forts to ab­sorb the im­pact of the higher tar­iff and pass on min­i­mum im­pact to the end con­sumers. The power gen­er­a­tion mech­a­nism has also been lined up to en­sure run­ning of least ex­pen­sive plants first to en­sure that min­i­mum fuel charges are passed on to the con­sumers.

New projects with an ex­pected ca­pac­ity of about 10400 MW, based on cheaper sources of fuel like coal and hy­dropower, are be­ing pur­sued, which will re­sult in re­duc­tion in cost of gen­er­a­tion in the com­ing years.

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