ISLAMABAD, Oct 26: The government has put off implementation of its decision to reduce subsidy on electricity by Rs120 billion and pass on the burden to the consumers.

Minister for Water and Power Raja Pervez Ashraf said at a news conference on Sunday that the government had earlier decided to slash the annual subsidy from Rs185 billion to Rs65 billion, but the implementation of the decision had been put off.

However, protests against increase in power tariff and unannounced loadshedding continued across the country despite the government’s decision to cut electricity bills by about 40 per cent after putting off a 31 per cent hike approved by the National Electric Power Regulatory Authority (Nepra).

The minister said the previous government had left Rs400 billion in circular debt in the power sector for which the PPP-led government was paying the price.

He said the huge circular debt had affected supply of furnace oil and gas to power companies and taken a heavy toll on the generation capacity of independent power producers (IPPs) and functioning of the Water and Power Development Authority (Wapda) and distribution companies.

He said release of Rs60 billion outstanding loans to IPPs a few days back had helped increase power generation. “I appeal to the masses to stop the protests because the increase in tariff has not been implemented,” he said.

He claimed that some people were fuelling the issue for political ends. He said those who had resorted to protests and damaged public and private property were not serving the country.