Power sector loan a hard nut to crack: Awais Laghari
Pakistan
Rs18 per unit capacity charges contribute the most in expensive electricity
ISLAMABAD (Dunya News) – Federal Minister for Energy Sardar Awais Ahmad Khan Laghari said on Friday that per unit cost of electricity was Rs35 sans taxes, adding that Rs18 per unit capacity charges were included in this.
Speaking to media, Minister Laghari said that cost of production of electricity ranged between Rs8-10 per unit with Rs1.5-2 per unit cost was that of transmission system of the electricity whereas cost of Discos stood at Rs5 per unit.
“Rs18 per unit capacity charges contribute the most in expensive electricity. People are using less electricity due to hike in its prices. Rising cost of electricity has also added to the miseries of the people during this ongoing wave of inflation,” he added.
Highlighting the challenge of mounting debts, he said that the biggest challenge for the government was to repay the loans of power sector.
Citing an example of Sahiwal Coal Plant, the minister said that capacity charges were Rs3 per unit when the plant first became operational in 2015, adding that now capacity charges cost us Rs11.75 per unit due to rise in dollar price and inflation rate of 22%, noting that consumers were repaying the loans in reality.
He said use of local coal can minimise the cost of electricity by Rs2-2.5 per unit.
