ISLAMABAD - The anomalous hike in electricity and gas tariffs have squeezed the consumers harder in 2023 as they were burdened with an additional Rs2.5 trillion, while the energy sector circular debt has ballooned to Rs5.5 trillion, and prices of petroleum products have gone up by up to 25pc during the year.
The power sector and petroleum sector regulators, National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) have failed to release the state of the industry report for the both important sectors.
The entire energy market, including oil, gas, electricity rates have reached to its record high of the country’s history, while circular debt has also ballooned to the highest level during the year 2023.
Almost all the energy sources trended upward in the calendar year 2023. The petrol and high speed diesel(HSD) prices have climbed to record high of Rs231/litre and Rs229/litre respectively, base electricity tariff jacked up to Rs50/unit (including GST), gas for domestic consumers to Rs4,000/MMBtu, gas meter monthly charges up to Rs2000.
In the year 2023, an additional burden of more than Rs2500 billion was imposed on electricity and gas consumers of the country.
Despite the historic increase in gas and electricity tariffs, the circular debt of the power and gas sectors has exceeded Rs5500 billion in 2023. The circular debt of country’s power sector and gas sector stood at Rs2611 billion, and Rs2900 billion respectively. The gas tariff was increased twice during the year, once by 120% and the second time by about 200%.
The base electricity tariff was increased by Rs7.50 per unit, which put an additional burden of around Rs800 billion on electricity consumers, Rs411 billion on electricity consumers on account of surcharges, Rs263 billion on account of four different quarterly adjustments and Rs55 billion on electricity consumers in the form of deferred payments.
In order to get Rs76 billion under the circular debt reduction plan agreed with IMF, an additional surcharge of Rs3.39 per unit was imposed on electricity consumers for four months from March to June, while a permanent surcharge of Rs3.23 per unit was imposed from July 2023. The imposition of surcharge will have an additional impact of Rs335 billion. From March to October 2023, the deferred amount of Rs55 billion was allowed to be collected from electricity consumers.
In the year 2023, there were total 12 monthly FCA adjustments, where electricity tariff was increased by 10 times, while it has been decreased twice.
Under the pressure from IMF the government has abolished Rs65 billion subsidy for the export sector and kissan packages. The government had withdrawn Rs12.13 per unit subsidy from the export sector and Rs3.60 per unit under the kissan package. The maximum per unit basic tariff including general sales tax has gone up to Rs50 per unit in 2023.
Gas prices were jacked up twice during the calendar year. According the Petroleum Division the increase in gas prices will help the gas companies pass on an additional Rs950 billion to the gas consumers. Gas prices had been increased by 112% from January 1, while from for the second time it has been increased from November 1, having an additional burden of Rs401 billion.
The fixed charges of gas for protected domestic consumers were also increased by 3900% from Rs 10 to Rs 400 per month, while for the various slabs of non protected consumers it has been increased to Rs 1000 per month and Rs 2000 per month respectively.
The prices of petrol and HSD after touching the historic hike of Rs331.38/litre and Rs318.18/litre respectively have settled at Rs267.34/litre and Rs276.21/litre respectively.
The year has ended with a hike of 24.76% in petrol price and HSD at 21.58%. In January 2023, the price of HSD was Rs227.80 per litre, while petrol was Rs214.80 per litre.
The year 2023, also witnessed DISCOS illegal overbilling of the millions of electricity consumers in the months of July and August.
