ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has endorsed the federal government’s decision to withdraw concessional tariff of five export-oriented sectors and agriculture tubewells from March 1, 2023.
According to Nepra’s decision, Power Division, on March 7, 2023, has intimated the following decision of the Federal Cabinet of February 28, 2023; (i) discontinuation of concessional tariff being provided @ Rs. 19.99/kWh all-inclusive to the five export-oriented sectors from March 1, 2023; (ii) discontinuation of special relief of Rs.3.60/kWh provided to the private agriculture consumers in their current base rate of Rs. 16.60/kWh from March 1, 2023.
The Power Division has mentioned that Kissan Package was implemented with the endorsement of the Authority and has now requested the Nepra to endorse both the directions conveyed to the Discos and K-Electric.
Kissan Package was allowed by the Authority on December 26, 2022 upon the request of the Power Division which was subsequently notified.
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However, concessional tariff Rs. 19.99/kWh for five export-oriented sectors, (ZRI Package) was unilaterally approved and notified by the federal government.
The Authority has observed that both the reliefs, ie, reduction in the base rate of private agriculture consumers by Rs.3.60/kWh, and concessional tariff @ Rs. 19.99/kWh all-inclusive to the five export-oriented sectors, were being picked up by the Federal Government as part of subsidy.
The Federal Government has now decided to discontinue both reliefs from March 1, 2023, meaning thereby that these reliefs will not be picked up as part of subsidy.
The Nepra is of the view that considering the fact that provision of subsidy is the prerogative of the federal government, arid withdrawal of it by the federal government would not have any impact on the Nepra’s determined tariff, therefore, the Authority has no objection on the discontinuation of concessional tariff to export oriented industries and Kissan Package for private agriculture consumers.
The Nepra also approved positive adjustment of Paisa 47.79 per unit in FCA of Discos for January 2023 to recover in March 2023.
In another decision, Nepra has approved positive adjustment of Rs 1.7113 per unit in FCA of KE consumers for month of January 2023 to be recovered in bills of March 2023.
Copyright Business Recorder, 2023