The Ministry of Energy informed the National Assembly on Friday in a written response that circular debt has decreased “thanks to government efforts.”
The Ministry, in its response to the request of the Chamber of Details on the circular debt, wrote that it had fallen in RS9BN during the first six months of the current fiscal year.
“By June 2024, the circular debt was at RS2,393 billion,” said the Ministry of Energy. “In December, it had been reduced to RS2,384 billion. Due to government efforts, there has been a significant reduction in circular debt.”
The Ministry of Energy added that the recovery of energy distribution companies (disc) has improved.
In addition to the reduced debt, the Ministry presented some aspects of the Government’s strategic roadmap by 2025-2029 in its response, which included initiatives such as audit distribution transformers to identify the loss of energy, as well as real-time monitoring to determine unauthorized consumption.
“To identify locations with high energy loss, a computerized energy auditors and transformers will be carried out,” said the answer. “An advanced measurement infrastructure system for the evaluation of losses and monitoring in real time to identify unauthorized consumption will also be implemented.”
The Ministry added that this strategy required that all consumers have electricity meters, so consumers without them would need to settle.
“The strategy includes the recovery action against the delinquent ones that are permanently disconnected under the land income law [and] and the contractor contractors will be installed in areas with high energy theft, ”wrote the Ministry of Energy.
The Ministry added that, according to the Government’s strategy, the tube wells would be solarized to reduce the dependence of the network electricity and a recovery scheme for local administrations and discos would be introduced to collect delays.
The National Regulatory Authority of Electric Power (NEPRA) on Thursday approved an RS1.71 tariff per average subsidy unit for consumers of all distribution companies, including K-Electric, for three months (April to June). The government notified the reduction today.
The RS58.6 billion subsidy would be financed through an OR Petroleum Tax for Litro in gasoline and diesel imposed by the federal government on March 15.
Confirming that there is no reduction in the base electricity rate so far, the Government admitted last week that a negative quarterly adjustment of RS1.90 per negative unit would fluctuate in line with the movement in interest and change rates, while RS1.71 per unit of relief against the highest oil tax can continue until the next fiscal year.
