ECC approves drop of Rs5 in electricity prices

The Economic Coordination Committee (ECC) has approved an incentive package in accordance with Prime Minister Imran Khan’s announcement regarding a Rs5 decline in the price of electricity per unit for March 2022 to June 2022.

According to a notification issued by the National Electric Power Regulatory Authority (NEPRA), the ECC has approved the following proposals of the summary.

For the Prime Minister’s relief package, ECC approved XWDISCOs, K-Electric commercial customers whose monthly consumption does not exceed 700 units (except lifeline consumers) and domestic non-TOU consumers.

The committee approved PM’s relief package of a “reduction of Rs5 per unit in consumer bill for eligible consumers for the package, which will be worked out based on the applicable notified schedule of tariff for the relief period of four months.” 

The ECC also approved the “supplementary grant of Rs106 billion in the head of tariff differential subsidy (TDS) and release the same to the Power Division for implementation of PM’s relief package.”

The notification also read that the Finance Division and Accountant General Pakistan Revenues (AGPR) shall release the subsidy in advance at the start of every month which will be divided into four instalments with Rs26.5 billion each.

The notification further said that the first instalment will be released on an immediate basis. However, the rest of the releases are to be made at the beginning of each month (April, May and June). “The adjustment will be submitted after due reconciliation subsequently,” it read. Moreover, the committee has been authorised to notify the PM’s package based on the points stated above.

The authority claimed to have no objection regarding the proposal as it does not impact the NEPRA determined tariff.