CCOE approves winter incentive package for electricity consumers

| Cabinet Committee on Energy fixes rate of incremental consumption at Rs12.66 per unit for domestic consumers | Also approves Pakistan Oil Refinery Policy 2021

ISLAMABAD   –  The Cabinet Committee on Energy (CCOE) Monday approved the winter incentive package for electricity consumers fixing the rate of incremental consumption at Rs12.66 per unit for domestic consumers and also directed the Petroleum Division to bring mechanism for gas price increase for the same months of the season.

The Cabinet Committee on Energy (CCOE), which met under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar, also approved the Pakistan Oil Refinery Policy 2021 in principle. However, the CCOE directed Petroleum Division to revisit the upfront incentive package offered to the existing refineries in the country.

The Power Division has submitted a summary on the incentive package for electricity consumers. It was informed that due to limited availability of natural gas during winter months in the recent years the consumers need an alternative affordable resource for meeting the heating requirements. For this, the consumers can switch to electric heaters for heating requirement as an alternative if the same is available at discounted rates. In 2020, to address the same, a discount on increment consumption namely Use more Pay Less Package was offered for the period of November 2019 till February 2020 by offering a rate of Rs 11.97/KWh for incremental consumption. The discount will be available to domestic, commercial & industrial consumers of XW-DISCOs and yielded a growth of 16% in consumption. 

The Power Division further said that any increase in the incremental consumption for heating through electricity is aligned with the long-term trajectory of the energy efficiency & conservation objective. Moreover, it will enable optimum use of system generation capacity. 

Hence, the winter incentive package for electricity consumers from 1st November 2021 to 28th February 2022, for all domestic, commercial, and general services consumers of XW-DISCOs, was submitted and approved by CCoE. The CCoE directed Power Division that KE consumers should also be included in this package. The Committee also directed Petroleum Division to submit an inverse gas pricing mechanism for the same months within this week.  

The reference period for incremental consumption will be November, 2020 to February, 2021; rate of Rs12.66 KWh shall be charged to domestic consumers (non-ToU) on the incremental consumption, above monthly 300 units or above the reference consumption in the corresponding months of reference period, whichever is greater; 

Rate of Rs 12.96 kWh shall be charged to commercial consumers (non-ToU) and general services consumers on the incremental consumption above the reference consumption in the corresponding months of reference period.

A tariff of Rs 12.66 /kWh shall be charged to domestic consumers (ToU) and commercial consumers (ToU) on the respective peak/off-peak incremental consumption, above the reference peak/off-peak consumption in the corresponding months of reference period.

New and existing consumers having no reference consumption available in period of November 2020 to February 2021 shall be offered the same package at the concessionary rate of 12.66 Rs/kWh through benchmark consumption methodology as provided.

The Power Division also submitted a report of the Implementation Committee on the ratification of the IPPs Agreement, under the 2002 Power Policy. After a detailed discussion, the Committee approved the final report of the Implementation Committee and directed the Power Division to proceed with the payments of all 11 IPPs as per the signed agreement except a company whose cases are under investigation at NAB.

The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Minister for Railway, SAPM on Power, Petroleum & Revenue, Adviser for Commerce and Investment to Prime Minister.

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