ISLAMABAD: On Wednesday, the Economic Coordination Committee (ECC) accepted K-proposed Electric’s tariff rationalization by raising the unit rate by Re0.571 and approving the use of Rs36.948 billion as an advance subsidy to the Central Power Purchasing Agency (CPPA-G).
Miftah Ismail, the federal minister of finance and revenue, presided over the ECC meeting on Wednesday in the finance division.
A summary of tariff rationalization for the power industry was submitted by the Ministry of Energy’s Power Division. The government may continue to apply single consumer-end pricing to K-Electric and state-owned distribution enterprises by National Electricity Policy 2021.
To preserve the uniform tariff across the nation, K-relevant Electric’s uniform variable charge had to be changed. The ECC authorized the K-Electric tariff rationalization through adjustments of an increase of Re0.571/unit with a three-month recovery period.
Additionally, NEPRA is required to publish a revised schedule of tariffs for the quarter ending in December 2021 or to incorporate tariff rationalization into the most recent schedule of tariffs for the quarter beginning in January 2022.
Another overview of K-Electric Limited’s quarterly tariff adjustments (QTLs) and their financial impact was filed by the Ministry of Energy’s Power Division. Following a thorough deliberation, the ECC approved using the Rs36.948 billion in the available budget as an advance subsidy in FY22 for later delivery to CPPA-G due to a lack of time.
Ahsan Iqbal, the minister of planning, Tariq Bashir Cheema, the minister of national food security, Naveed Qamar, the minister of commerce, Makhdoom Syed Murtaza Mehmood, the minister of industries, Dr. Aisha Ghous Pasha, the minister of state finances, federal secretaries, the head of the federal board of revenue, and senior officers were all present at the meeting.
The ECC approved the release of Rs17 billion during the current fiscal year, or FY22, as an investment in DISCOs for payment to RLNG-based public power plants (Haveli Bahadur Shah, Bhikki, and Balloki Power Plants), to satisfy the cash requirement. This was based on another summary provided by the Power Division on the settlement of payables to government-owned power plants at par with IPPS.
The ECC considered and approved an Rs. 1,224.41 million supplementary grant in favor of the Ministry of Interior for payment to the families of deceased/Shaheed employees under the Prime Minister’s Assistance package to assist the families of Shuhda/deceased ICT Police who gave their lives in the line of duty.
The Federal Directorate of Immunization (FDI) requested Rs6,133.314 million from the ECC to purchase vaccines to ensure a continuous supply to the provinces and to improve the immunization program for infants under 1 year of age against ten vaccine-preventable diseases (VPDs).
A further disbursement of Rs3,096.05 million to the AJ&K government to permanently relocate refugees from J&K that are illegally occupied by India was also approved. This money will go to the Ministry of Kashmir Affairs and Gilgit-Baltistan.
Due to the austerity measures implemented by the current administration, the ECC rejected a summary provided by the Ministry of Housing and Works for the provision of additional funds for the renovation and upkeep of the Ministers’ Enclave in Islamabad. The previous administration spent additional millions of dollars (Rs87.5 million in 2018–19, Rs4.8 million in 2019–20, and Rs50 million in 2020–21) between 2018 and 2021 on the upkeep and repair of the Ministers’ Enclave. Grants for add-ons and technical add-ons were also approved. ECC approved Rs. 5,891.9 million for the Ministry of Interior, Rs. 96.133 billion for the Power Division to pay IPPs in the second installment (60 percent payment), Rs. 40 million for NCOC’s media campaign, Rs. 125.8 million for the Cabinet Division, Rs. 3,750 million for the Ministry of Foreign Affairs to cover its budget shortfall, Rs. 379 million for the IT Ministry for Special Communication Organization (SCO), and Rs. 5 billion for Pakistan Railway to set up a new line