ECC may hike electricity rates for K-Electric consumers

• Under the agenda of the meeting, Nepra consideration to raise K-Electric consumers’ tariff by Rs4.88 per unit will be discussed.
• Nepra increased KE's tariff by 38 percent or Rs4.87 per unit to Rs17.69 from Rs 12.82 per unit across the board for 11 quarters from Jul-Sep 2016 to Jan-Mar 2019 under quarterly adjustment formula.

The issue of increasing electricity tariff by Rs4.88 per unit for K-Electric (KE) consumers will be discussed at the Economic Coordination Committee (ECC) meeting today (Wednesday).

Advisor on Finance Dr. Abdul Hafeez Shaikh will chair the meeting, under the agenda of the meeting, National Electric Power Regulatory Authority (Nepra) consideration to raise K-Electric consumers’ tariff by Rs4.88 per unit will be discussed.

Months ago, Nepra increased KE's tariff by 38 percent or Rs4.87 per unit to Rs17.69 from Rs 12.82 per unit across the board for 11 quarters from Jul-Sep 2016 to Jan-Mar 2019 under quarterly adjustment formula.

According to the Nepra reconsideration request in the matter of K-Electric, MYT 2017 for the period from FY 2016-17 to FY 2022-23 (07 years) was decided by the Authority on July 05, 2018, whereby an average sale rate of Rs 12.8172/kWh was approved.

The committee is expected to approve a step-by-step method of recovery rather than full recovery from KE consumers.

Meanwhile, under the eight-point agenda, tariff adjustment for the period from July 2016 to March 2019 will also be considered. The summary of subsidies for agricultural consumers of Balochistan will also be brought into consideration.

The meeting will approve the issuance of a supplementary grant for HEC. Furthermore, the summary of gas supply to Sui Southern Gas Company (SSGC) is also on the agenda.

The finance ministry will also present a summary of increasing remittances, in the meeting. The ECC will also consider the issue of restoration of Al-Tuwairqi steel mills.