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ISLAMABAD: The agriculture consumers of Discos and KE have to pay Rs23.30 per unit from November 2022, all-inclusive despite the Rs3.60 per unit relief announced in base tariff by the federal government, well-informed sources told Business Recorder.

According to the Power Division, Nepra’s determined tariff for agriculture consumers is Rs24.51/unit and the Government of Pakistan is already subsidising it and charging at Rs16.60 per unit, hence, a subsidy of Rs 7.91/unit is already being provided with the financial impact of 98 billion per annum. The Power Division maintains that the reduction of base rate by Rs3.60/ unit means that the remaining taxes and other charges will remain applicable as usual, hence the tariff for November 22 for agriculture consumers will be Rs23.30/unit. The impact of fixed charges is Rs 1.03 per unit, FCA Rs0.08 per unit, QTA, Rs4.66 per unit, debt servicing Rs0.43 per unit, and taxes/duties Rs4.10 per unit.

On November 29, 2022, the Secretary of the Ministry of National Food Security and Research tabled the summary and sought permission from the Chairman, ECC to present the case as an additional item in view of the exigency in the matter which was allowed.

The ECC was informed that the Prime Minister announced Kissan Package on October 31, 2022. Finalized draft of the Package was presented to the ECC held on November 11, 2022. The package was duly approved by the ECC with the exception of the proposal relating to the Power Division on ‘tariff for electric tube wells fixed at Rs.13/unit (FCA and other taxes will be charged).’ The ECC had directed the Power Division to deliberate on the details of the package, taking the Finance Division on board, and after a presentation to the Prime Minister, it will be placed before Cabinet for its approval.

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The Power Division held detailed deliberations on this issue and made a presentation for the Prime Minister on November 24, 2022, wherein the proposal for reducing the base rate to Rs13/unit was approved. It was also decided that the Minister for National Food Security & Research and the Minister of Power Division shall jointly hold a press conference to clarify the details of the reduction in the base rate.

The Ministry of National Food Security and Research submitted the following proposals for the package for consideration and approval of the ECC: (i) private agriculture consumers of all Discos and K-Electric would be provided relief of Rs. 3.60/kWh in their current base rate of Rs. 16.60 /kWh applicable from July 25, 2022; (ii) Fuel Charges Adjustment (FCA), Quarterly Tariff Adjustments (QTAs) and taxes/duties shall be paid by the consumers as usual;(iii) additional Supplementary Grant of Rs. 43 billion (if package applicable with effect from July 1, 2022) in the head of TDS and release it to the Power Division for implementation of PM’s Kissan Package. OR Additional Supplementary Grant of Rs. 28 billion (if package applicable with effect from November 1, 2022) in the head of TDS and release it to the Power Division for implementation of PM’s Kissan Package; and (iii) concerned Ministry/Division may be directed to implement it in letter and spirit.

The ECC decided private agriculture consumers of all Discos and K-Electric shall be provided relief of Rs3.60/kWh in their current base rate of Rs16.60/kWh applicable vide SRO 1155 to 1175 of July 25, 2022. However, FCA, QTAs, and taxes/duties shall be paid by the consumers as usual. It was also decided that an Additional Supplementary Grant of Rs28 billion with effect from November 1, 2022, in the head of TDS and released the same to the Power Division for implementation of PM’s Kissan Package.

Copyright Business Recorder, 2022

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