ISLAMABAD   -   The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved to increase the power tariff by Rs0.30 per unit so that the impact of instant adjustments would not pass on to lifeline and domestic consumers’ upto 300 units.

Adviser to the Prime Minister on Finance and Revenue, Abdul Hafeez Shaikh, chaired a meeting of the ECC of the Cabinet. To the proposal by the Ministry of Energy for tariff rationalisation for power sector-quarterly and annual indexation/adjustments of distribution margin, the ECC approved a proposal to notify the NEPRA approved adjustments for third and four quarters fiscal year 2018-19 and annual adjustment/indexation after incorporating the target quarterly subsidy and additional charge to maintain uniform tariff. The ECC further directed for the adjustment to be shown separately in the consumer bill and applicable for next 12 months effective from October 01, 2019.

Similarly, the ECC in order to fully protect the lifeline and domestic consumer consuming upto 300 units, approved the additional charge of Rs0.30 per unit so that the impact of instant adjustments was not passed on to lifeline and domestic consumers upto 300 units and at the same time the consolidated revenue requirement approved and determined by NEPRA on 27-9-2019 was maintained.

The committee has also approved a proposal submitted by the Ministry of National Food Security and Research for release of 150,000 tonnes to the provincial governments of Khyber Pakhtunkhwa as well as release of 100,000 tonnes to Sindh subject to release of same quantity of wheat by the latter from its own stocks.

The ECC further approved a set of proposals submitted by the Ministry of Energy for the 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 and 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 the Cabinet Committee on Energy’s “Approval of the Settlement of the Settlement of Liquidated Damages” as referred to it by the Cabinet and constituted a Committee comprising Economic Affairs Minister Hammad Azhar, Advisor to the Prime Minister on Institutional Reforms and Austerity and Special Secretary Finance Omar Hamid Khan to examine the matter and firm submit its recommendations to ECC.

To another proposal by the Ministry of Energy, the ECC amended its decision of 28th August 2019 to allow proposed subsidy by the Sindh Government in favour of the destitute residents of Islamkot for reflection in the electricity bills of 4514 consumers of the area while the Sindh government would 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 a proposal of the Ministry of Energy to allow Central Power Purchasing Agency to approach NEPRA for approval of extension of tariff as agreed between Pakistan and Iran on 15th March 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 Rs419.154 million to pay court fee and fee to foreign counsels in case of Dr. Hilal Hussain At-Tuwairiqi and Al-Ittifaq Steel Products Company Limited vs Islamic Republic of Pakistan.

Meanwhile, National Electric Power Regulatory Authority (NEPRA) has Wednesday allowed an increase of Rs1.66 per unit in power tariff for Ex-WAPDA Discos on account of fuel cost adjustment for the month of August. During a public hearing, presided over by Chairman NEPRA, Tauseef H Farooqi, on the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the Discos, NEPRA has allowed an increase of Rs1.66 per unit against the demanded Rs1.8672 per unit. In its petition, the CPPA had sought a tariff increase of Rs1.8672 per unit due to a hike in fuel prices. In its petition the CPPA pleaded that it had charged consumers a reference tariff of Rs3.2045 per unit while actual fuel cost turned out to be more than the amount charged and hence it should be allowed to increase the rate by Rs1.8672 per unit.

However Nepra has approved an increase of Rs1.66 per unit in the electricity tariff for power distribution companies. The decision will have an impact of an additional Rs22.6 billion on the electricity consumers. The tariff adjustment will, however, not be applicable to lifeline consumers who consume up to 50 units per month and K-Electric consumers.

According to the petition, total energy generated in August was 14051.56 GWh at a total price of Rs67.901 billion which is Rs4.8323 per unit of the total, the net electricity delivered to Discos was 13769.87 GWh at Rs69.836 billion with transmission losses of 2 percent. According to the data provided to NEPRA, the share of hydropower generation was 5667.51 GWhs or 40.33 percent in August. As per the data 1873.91 GWh or 13.34 percent electricity was generated from coal at the cost of Rs5.5745 per unit. It was informed that around 505.92 GWh or 3.60 percent electricity was generated from furnace oil. The cost of electricity generated from RFO was Rs12.5112 per unit.

In August no electricity was generated from high speed diesel. The energy generated from RLNG was 3216.04 GWh or 22.89 percent of total generation. The cost of RLNG based electricity was Rs11.4994 per unit. The total generation from local gas-based electricity was 1668.49 GWh or 11.87 percent and the cost was Rs7.6557 per unit. The generation from nuclear was 654.49 GWh or 4.66 percent and the cost of generation was Rs0.8868 per unit. From Iran 52.45 GWh or 0.37 percent electricity was imported at the cost of Rs11.57.09 per unit. From Wind and Solar 322.43 GWh and 61.81 GWh electricity was generated respectively.