AVN 67.60 Increased By ▲ 0.50 (0.75%)
BAFL 30.99 Decreased By ▼ -0.01 (-0.03%)
BOP 4.91 Increased By ▲ 0.01 (0.2%)
CNERGY 3.74 Decreased By ▼ -0.04 (-1.06%)
DFML 14.03 Decreased By ▼ -0.40 (-2.77%)
DGKC 41.11 Decreased By ▼ -0.74 (-1.77%)
EPCL 46.58 Increased By ▲ 0.01 (0.02%)
FCCL 11.60 Decreased By ▼ -0.09 (-0.77%)
FFL 5.03 Decreased By ▼ -0.04 (-0.79%)
FLYNG 5.85 Increased By ▲ 0.05 (0.86%)
GGL 10.34 Decreased By ▼ -0.08 (-0.77%)
HUBC 68.04 Increased By ▲ 0.04 (0.06%)
HUMNL 5.74 Decreased By ▼ -0.02 (-0.35%)
KAPCO 28.02 Decreased By ▼ -0.08 (-0.28%)
KEL 2.26 Decreased By ▼ -0.03 (-1.31%)
LOTCHEM 25.02 Decreased By ▼ -0.03 (-0.12%)
MLCF 21.45 Decreased By ▼ -0.24 (-1.11%)
NETSOL 87.66 Increased By ▲ 1.66 (1.93%)
OGDC 99.30 Increased By ▲ 6.92 (7.49%)
PAEL 11.00 Decreased By ▼ -0.09 (-0.81%)
PIBTL 4.26 Increased By ▲ 0.02 (0.47%)
PPL 81.12 Increased By ▲ 0.97 (1.21%)
PRL 13.23 Decreased By ▼ -0.41 (-3.01%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 43.85 Increased By ▲ 0.38 (0.87%)
TELE 6.12 Increased By ▲ 0.16 (2.68%)
TPLP 15.66 Decreased By ▼ -0.07 (-0.45%)
TRG 118.99 Increased By ▲ 3.98 (3.46%)
UNITY 14.01 Increased By ▲ 0.16 (1.16%)
WTL 1.23 Increased By ▲ 0.07 (6.03%)
BR100 4,171 Increased By 47 (1.14%)
BR30 15,253 Increased By 323.5 (2.17%)
KSE100 41,523 Increased By 332 (0.81%)
KSE30 15,663 Increased By 168.9 (1.09%)
Print

Power tariff to be raised in three phases

  • The tariff may be passed in three phases, Rs3.5/unit in July, Rs3.5/unit in August and remaining Rs 0.91/unit may be passed on to the consumers in the month of October 2022
Published June 18, 2022
Follow us

ISLAMABAD: The federal government has decided to pass on Rs7.91 per unit determined by Nepra in three phases, along with Rs0.20 per unit hike on account of subsidy rationalization phase-II, well-placed sources in Power Division told Business Recorder.

The Power Division presented two options before the Economic Coordination Committee (ECC) of the Cabinet, however, during the meeting, some of the members floated a third option, the sources added.

“The ECC discussed that another option is also possible in order to avoid immediate price shock to consumers. The tariff may be passed in three phases, Rs3.5/unit in July, Rs3.5/unit in August and remaining Rs 0.91/unit may be passed on to the consumers in the month of October 2022,” the sources maintained.

The Power Division shared that the total tariff differential subsidy requirement on this proposal would be around Rs 243 billion. ECC inquired about notification of subsidy reform phase-l approved by Cabinet in the month of December 2021. Power Division shared that NEPRA had issued the determination in March 2022 which was pending for notification in official gazette. The ECC directed Power Division to notify the subsidy reform phase-l notification with effect from July 1, 2022 along with annual rebasing.

After detailed discussion, the ECC set aside the proposal of Power Division, on the summary Economic Coordination Committee (ECC) of the Cabinet considered as the “tariff rationalization for power sector” and directed the Power Division to implement the subsidy reform adjustment which was approved in December 2021, but was not implemented.

Power sector: ECC approves Rs50bn as advance against subsidy claims

Moreover, ECC also approved the annual rebasing plan with the following modifications, as revisited by the Power Division based on the deliberation in the meeting: (i) pass on Rs 3.5/unit in July 2022,Rs 3.5/unit in August and remaining increase of Rs 0.91/unit shall be passed on to the consumers in the month of October 2022; and (ii) pass on Rs 0.20/unit as per subsidy reform phase—II from July 1, 2022; (iii) uniform tariff so determined by Nepra and recommended by it as “final tariff” for notification in the official gazette, be notified to the extent of modification and supersession of existing notified rate (inclusive of subsidy/tariff rationalization surcharge) in SROs 182 to 191 ()/2021 of February 12, 2021, as amended vide SROs 1280 to 1289 (1)/2021 of October 01, 2021, and SROs 1419 to 1428 (1)/2021 of November 05, 2021; (iv) tariff rationalisation by way of adjustments be approved for K-Electric to maintain uniform tariff across the country; and (v) on the same pattern of Discos, Nepra may be approached to issue revised Schedule of Tariff (SoT) determined for the quarter October to December 2021 with prospective application of GoP rates after incorporating tariff rationalization and upon approval of Nepra notify the same in the official gazette by way of modification in SRO 1429(1) 2021, 192(1)2021, 1037(1) 2020 and 757(1) 2019.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Power tariff to be raised in three phases

Rupee falls 0.35%, settles at 276.28 against US dollar

Government postpones All Parties Conference again as PM will be in Turkiye

KSE-100 rises 0.81% on optimism over resolution of gas sector circular debt

Up to $5mn smuggled into Afghanistan from Pakistan daily: report

PM Shehbaz orders establishment of relief fund to aid Turkiye

Debt reprofiling viable option for Pakistan under IMF watch: report

Adani-owned NDTV's profit more than halves on advertising drop

US trade deficit widens in 2022 to record on strong imports

Islamabad court rejects Sheikh Rashid’s bail petition

Former president Pervez Musharraf laid to rest in Karachi: ISPR