Islamabad - The Federal Government has sought the National Electric Power Regulatory Authority (NEPRA) approval for the adjustment of subsidy to various categories of consumers, which will become part of uniform base tariff increase of Rs7.91/unit .

In a petition submitted to NEPRA the federal government has also sought the NEPRA approval for including all the consumers using up to 100 units in the protected categories capping their base tariff cost of electricity at Rs13.48/unit instead of the Rs19.56/unit.

Approval of the government is hereby conveyed in anticipation of approval of the cabinet, to file motion before NEPRA along with schedule of tariff, as approved by the ECC vide its decision dated 13.06.2022, with the modification that consumers consuming less than 100 units and falling in non-protected category shall be charged Rs13.48/unit instead of Rs19.56/unit and that the consequential revenue differential shall be adjusted in various categories as per schedules of tariff, said the petition. Instant motion is being filed by the federal government with respect to consumer End Tariff Recommendations of XWDISCOs under section 7 and 31 of the Act read with Rule 17 of the Rules so as to reconsider and issue the uniform schedule of tariff of XWDISCOs, by incorporating targeted subsidy and inter distribution companies tariff rationalisation pursuant to guidelines for the category of each of NEPRA determined rate (inclusive of subsidy/tariff rationalization surcharge/inter disco tariff rationalisation) notified vide SROs 182 to 191 (l)12021 dated February 12, 2021, as amended from time to time through SROs 1280 to 1289 (l)/2021 dated October 1, 2021, and SROs 1419 to 1428 (l)/2021 dated November 5, 2021, said a petition submitted by the federal government to NEPRA.

NEPRA will hold public hearing today (Wednesday) on the petition. NEPRA on June 2, 2022 had approved a hike of almost 47pc (Rs7.91/unit) in base power tariff. After the decision, the national average base tariff will go up to Rs24.82/unit from the existing determined national average tariff of Rs16.91/unit. However, after the application of 17pc GST to the new base tariff per unit cost will reach around Rs29.034/unit. The increase of Rs7.91/unit in the base tariff will enable the power distribution companies to collect an additional Rs893.83 billion in one year. The government will pass on the proposed increase in base tariff to consumers in three phases. In a summary moved to the prime minister for tariff rationalisation for power sector, the power division said that NEPRA vide its determinations dated 2nd June 2022 determined revenue requirements of each of the XWDISCOs.

The same was intimated to this division for notification in the official gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 within 30 days from the date of decision. In terms of sections 31(4) and 31(7) of the Act ibid, approval of federal government is required to file a reconsideration motion before NEPRA for determination and notification of uniform tariff within 30 days of decision by NEPRA.

Federal govt also seeks Nepra approval for including all consumers using up to 100 units in protected categories capping their base tariff cost of electricity at Rs13.48/unit instead of the Rs19.56/unit

Accordingly, Power Division submitted a summary for ECC dated 13th June 2022. ECC in its meeting held on 13th June 2022 considered the summary and recommended that tariff may be passed on to consumers in three phases i.e. Rs3.5/unit in July 2022, Rs3.5/unit in August and remaining increase of Rs0.91/unit in the month of October 2022. The decision of the ECC was placed before federal cabinet for ratification in its meeting dated 17.06.2022, and the cabinet decided that the matter shall be placed before the federal cabinet in the form of supplementary summary; however, the same was not placed before the cabinet for consideration. In the meanwhile, this division was told to submit the case for consideration of the cabinet as table agenda item for its meeting dated 4th July 2022. However, it has been learnt that the same has not been tabled.

Modified uniform variable charge for KE, in order to maintain uniform tariff across the country keeping in view targeted tariff differential subsidy of KE and cross subsidies. The authority is, accordingly, requested to issue revised SOT determined for the Quarter October to December 2021, or incorporate in the latest schedule of tariff being determined by NEPRA for the Quarter January to March 2022 with prospective application of applicable uniform rates incorporating tariff rationalisation to be notified in the official gazette by way of modification in on the same pattern of XWDISCOs. Once considered and approved, the same will lead to determination of “uniform final tariff”, in terms of Section 31(7) of the Act, for notification by the federal government to the extent of modification and/or supersession of existing determined uniform tariff rates for XWDISCOs (inclusive of subsidy/tariff rationalisation surcharge/inter disco tariff rationalisation).