ISLAMABAD: Ministry of Water and Power has asked the government to suspend for one year the imposition of 10 paisa per unit Neelum-Jhelum development surcharge and TV licence fee of Rs25 in electricity bills. It also suggested to the government to defer its decision of a 17pc increase in power tariff agreed with the IMF and World Bank, till the power deficit is removed, a senior official told The News. “It will be quite embarrassing for the government if it increases the power tariff by 17 per cent in July and then in September, at a time when end-consumers are facing unprecedented power outages across the country,” the official said. “It may spark agitation in the country.” “Yes, we have recommended to the government to suspend the proposed increase in power tariff till the existing deficit in electricity production is removed in December,” Water and Power Secretary Shahid Rafi confirmed when contacted by The News. “We have also proposed to the government to suspend the levy of 10 paisa per unit Neelum-Jhelum (N-J) surcharge and TV licence fee of Rs25 through electricity bills for one year, because when the government increases tariff, people really feel the heat,” Rafi stated. He claimed the government is actively considering his ministry’s proposal as political fallout from the increase in tariff, at a time of prolonged power outages, would prove disastrous for the government. When asked whether efforts to arrange local financing for the most strategic project of Neelum-Jhelum will be affected by the suspension of the surcharge, Rafi said so far the government has earned Rs10 billion from the surcharge and if it is suspended for one year ongoing work on the project will not be affected. However, after one year it can be imposed again. Despite repeated attempts, Adviser to Prime Minister on Finance Shaukat Tarin could not be contacted for comments. Notably, when additional secretary and spokesman for the Ministry of Finance, Asif Bajwa was contacted, he said he is not aware of any such proposal. Bajwa said the government has not yet taken a decision to implement the 17 per cent power tariff increase. However, he said incase implementation of the increase in power tariff is delayed, the government will have to allocate a substantial amount for subsidy. When asked if the government will ask the IMF, during the forthcoming review talks scheduled in the first week of July to be held in Dubai, for relaxation over the covenant of power tariff, Bajwa said it could be an item of the agenda.

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