ECC has given the approval of surcharge of Rs.1.5 per unit from K-Electric consumers which will be recovered in 12 months.
The meeting of Economic Coordination Committee (ECC) of Cabinet which took place in Islamabad under the Chairmanship of Ishaq Dar, the Federal Minister for Finance gave the approval of surcharge of Rs.1.5 per unit from K-Electric consumers which will be recovered in 12 months.
The Power Division has requested the ECC to approve a surcharge of Rs.1.52 per unit to be recovered in 12 months in terms of Section 31, Subsection 8 of the NEPRA Act so as to recover Rs.24.5 billion.
The remaining amount of Rs.250.7 billion may be approved as a tariff differential subsidy.
According to the sources of Finance Division, the Ministry of Energy (Power Division) submitted a summary regarding Quarterly Tariff Adjustment of K-Electric and as per the National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies. As such, the K-Electric applicable uniform variable charge is required to be modified to maintain the uniform tariff all over the country.
The ECC also approved the release and utilization of the available budget of Rs.76 billion as payment of arrears under different heads. The informed said that the Power Division presented a summary about the implementation of the revised circular debt management plan and utilization of Rs.20.726 billion for state-owned power plants.
The Federal Cabinet had approved the revised circular management plan for the power sector in February 14, 2023.
The ECC gave the approval of billions of rupee Technical Supplementary Grant (TSG) for a different ministries including Federal Ministry of Education and Professional Training, Federal Tax Ombudsman, Ministry of Interior for Repair and maintenance of Helicopter by Pakistan Rangers, the Director General of Immigration and Passport, Gilgit-Baltistan Council and Ministry of Housing and Works for the execution of development projects.