The Karachi Electric Supply Corporation (KESC) is likely to be given subsidy of Rs 731 million against tariff determination notification withheld by the federal government for the last six months, it is learnt.
The National Electric Power Regulatory Authority (Nepra) a year ago had increased KESC tariff from 15 to 69 paisa per unit in three quarters on the basis of variation in fuel prices and cost of power purchased by it from Wapda and IPPs. But the government did not notify the revised tariff.
When the Ministry of Water and Power consulted Finance Ministry that whether tariff would be increased as per tariff determinations, or the government was willing to give subsidy, the former was asked to work out subsidy and send it to Finance Ministry for decision, sources said.
The ministry of Power thereby calculated subsidy amounting to Rs 731 million and intimated Finance Ministry a few months ago. However, KESC's management pursued the case actively.
A couple of weeks back, Finance Ministry said that a summary be sent to the Economic Co-ordination Committee (ECC) of the Cabinet for final decision. It, however, agreed to support the case in the ECC, sources said, adding that the Privatisation Commission (PC) was already pursuing the case for early release of subsidy to the utility.