ECC approves Re0.571/unit tariff rationalisation for KE

Mehtab Haider
Thursday, Jun 23, 2022

ISLAMABAD: Economic Coordination Committee (ECC) on Wednesday approved tariff rationalisation for K-Electric by increasing Re0.571/unit, while also allowing usage of Rs36.948 billion as advance subsidy to Central Power Purchasing Agency (CPPA-G).

The ECC meeting was presided over by Federal Minister for Finance and Revenue Miftah Ismail at the Finance Division on Wednesday.

Ministry of Energy, Power Division submitted a summary on tariff rationalisation for power sector. As per National Electricity Policy 2021, the government could maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies.

Accordingly, K-Electric applicable uniform variable charge was required to be modified to maintain the uniform tariff across the country. The ECC approved tariff rationalisation for K-Electric by way of adjustments of increase Re0.571/unit with recovery period of three months.

Further, NEPRA has to issue revised schedule of tariff determined for the quarter October to December, 2021, or incorporating in the latest schedule of tariff for the quarter Janaury-March 2022 after incorporating tariff rationalisation.

Ministry of Energy, Power Division submitted another summary on notification of quarterly tariff adjustments (QTAs) of K-Electric Limited and associated financial impact. The ECC after detailed discussion allowed utilising available budget of Rs36.948 billion as advance subsidy in FY22 for onward release to CPPA-G due to paucity of time.

The meeting was attended by Planning Minister Ahsan Iqbal, National Food Security Minister Tariq Bashir Cheema, Commerce Minister Naveed Qamar, Industries Minister Makhdoom Syed Murtaza Mehmood, State Finance Minister Dr Aisha Ghous Pasha, along with federal secretaries, Federal Board of Revenue chairman, and senior officers.

On another summary presented by the Power Division on settlement of payables to government owned power plants at par with IPPS, the ECC allowed release of Rs17 billion during current financial year ie FY22 as investment in DISCOs for payment to RLNG-based public power plants (Haveli Bahadur Shah, Bhikki and Balloki Power Plants) to meet the cash requirement.

The ECC considered and approved a supplementary grant of Rs1,224.41 million in favour of Ministry of Interior for payment to the families of deceased/Shaheed employees under Prime Minister’s Assistance package in order to support the families of Shuhda/deceased of ICT Police who have sacrificed their lives in the line of duty.

The ECC approved Rs6,133.314 million in favour of Federal Directorate of Immunization (FDI) to procure vaccines for uninterrupted supply to the provinces and to enhance the immunisation programme for children under 1 year age against ten vaccine preventable diseases (VPDs).

An approval for Rs3,096.05 million was also granted for Ministry of Kashmir Affairs and Gilgit-Baltistan for further release to AJ&K government to permanently settle refugees from Illegally Indian Occupied J&K stranded in AJ&K.

On a summary submitted by Ministry of Housing and Works for allocation of additional funds for repair and maintenance of Ministers’ Enclave, Islamabad, the ECC rejected the proposal due to austerity measures taken by the present government. Further millions of funds (Rs87.5 million in 2018-19, Rs4.8 million in 2019-20 and Rs50 million in 2020-21) have already been utilised on repair and maintenance of Ministers’ Enclave by the previous government from 2018 to 2021. Supplementary/technical supplementary grants were also approved. ECC approved Rs5,891.9 million in favour of Ministry of Interior; Rs96.133 billion to Power Division for payment to the IPPs as second installment (60 percent payment); Rs40 million for the media publicity campaign by NCOC; Rs125.8 million in favour of Cabinet Division; Rs3,750 million for Ministry of Foreign affairs to meet its budgetary shortfall; Rs379 million in favour of IT Ministry for Special Communication Organization (SCO); Rs5 billion to Pakistan Railway to settle a major portion of its pending liabilities with directions to make Pakistan Railways a profitable business entity.