The Economic Coordination Committee (ECC) has decided to increase electricity tariff by Re 0.53 per unit on account of annual tariff adjustment and distribution margin. Sources on condition of anonymity said that increase may be of Re 0.83 per unit instead of Re 0.53 per unit and the amount to be recovered from the power consumers may be greater than Rs 53 billion as being speculated. However, officials of Finance Ministry, when contacted, denied increase of Re 0.83 per unit in tariff.
A statement issued after the meeting of the ECC, chaired by Advisor to Prime Minister on Finance Dr Abdul Hafeez Shaikh, said that on a proposal of Ministry of Energy for tariff rationalization for power sector - quarterly and annual indexation/adjustments of distribution margin - the meeting okayed to notify the National Electric Power Regulatory Authority (NEPRA) approved adjustments for Q-3&4 of FY 2018-19 and annual adjustment/indexation after incorporating the target quarterly subsidy and additional charge to maintain uniform tariff.
The ECC meeting further directed for the adjustment to be shown separately in the consumer bill and it will be applicable for next 12 months effective from October 01, 2019. Similarly, the ECC in order to fully protect the lifeline and domestic consumers consuming up to 300 units, approved the additional charge of Rs 0.30 per unit so that the impact of instant adjustments is not passed on to lifeline and domestic consumers up to 300 units and at the same time the consolidated revenue requirement approved and determined by NEPRA on 27-9-2019 is maintained.
The meeting also approved to release 150,000 tons of wheat to the provincial government of Khyber Pakhtunkhwa as well as release of 100,000 tons of wheat to the Sindh government subject to release of same quantity of wheat by the Sindh government from its own stock. The proposal for release of wheat was submitted by the Ministry of National Food Security and Research for release of wheat to the provinces.
The ECC also approved a proposal of Ministry of Energy for resolution of issues pertaining to 1124 MW Kohala Hydropower Project, including the minimum ecological water flow of 42 cumecs by maintaining the e-flow of 30 cumecs as well as releasing additional flow of 12 cumecs from the spillway, construction of sewage treatment plants and water bodies whose cost would be included in the NEPRA tariff.
The ECC also discussed the issue regarding "approval of the Settlement of the Liquidated Damages" as referred to it by the cabinet and constituted a committee comprising Minister for Economic Affairs Hammad Azhar, Advisor to the Prime Minister on Institutional Reforms and Austerity Dr Ishrat Hussain and Special Secretary Finance Omar Hamid Khan to examine the matter and submit its recommendations to the ECC.
The ECC also amended its decision of August 28, 2019 to allow proposed subsidy by the Sindh government in favor of the destitute residents of Islamkot for reflection in the electricity bills of 4,514 consumers of the area while the Sindh government would also make budgetary provision/allocation for the amount of the proposed subsidy on annual basis for the life of the proposed facility, failing which the facility would be discontinued.
The ECC also approved Ministry of Energy's proposal to allow Central Power Purchasing Agency to approach National Electric Power Regulatory Authority (NEPRA) for approval of extension of tariff as agreed between Pakistan and Iran on March 15, 2019 for supply of power to Makran Division from the Power Generation & Transmission Management Company (TAVANIR).
The ECC also approved a technical supplementary grant of Rs 419.154 million to pay court fee and fee to foreign counsel in case of Dr Hilal Hussain At-Tuwairiqi and Al-Ittifaq Steel Products Company Limited vs Islamic Republic of Pakistan.
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