Islamabad June 13 2022: Federal Minister for Finance and Revenue Mr. Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division, today.
Ministry of Energy, Power Division submitted a summary on tariff rationalization for power sector.
The ECC after detailed discussion approved the annual rebasing plan with certain modifications. The ECC also directed Power Division to recommend subsidy reform adjustment for unprotected consumers which was approved in December 2021 but not implemented.
Earlier on Thursday, the National Electric Power Regulatory Authority (Nepra) approved a hike in the power tariff by Rs7.9 per unit to pass on the impact of increase in fuel prices, fixed payments to Independent power producers and the impact of the rupee’s devaluation.
The tariff has been determined for the FY2022-23, which on national average is Rs.24.82 per unit, higher by Rs.7.9078 unit than the prevailing national average tariff of Rs16.91 per unit.
The energy purchase price was projected at Rs1.5 trillion, while the cost of capacity charges was projected as Rs1.3 trillion.
Total revenue requirement of XWDiscos, including Discos margin and prior year adjustment, is projected as Rs2.8 trillion with projected sales of 113,001 gigawatt hours (GWh).
Mepco, Gepco, Hesco, Sepco, Qesco, Pesco and Tesco have been allowed an investment of around Rs406 billion for their distribution investment programme for the five-year period, the regulator said, adding that the technical and distribution losses of XWDiscos were reduced from 13.46 per cent to 11.70pc for the FY 2022-23.
Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Division Mr. Musadik Masood Malik, Federal Secretaries, Chairman FBR, Chairman OGRA and senior officers attended the meeting.
