Govt to give Rs1.3b for K-Electric consumers

Additional grant will be utilised to implement winter incentive package

ISLAMABAD:

The government will give additional supplementary grant of Rs1.3 billion for additional subsidy to K-Electric consumers to implement winter incentive package for electricity consumers on incremental consumption.

The actual marginal cost to be utilised for subsidy shall be provided by the National Electric Power Regulatory Authority (Nepra). Further, Nepra shall provide an appropriate mechanism for adjustment, keeping in view existing tariff determinations of K-Electric.

The Power Division informed that the Cabinet Committee on Energy (CCOE), in its meeting held on September 13, 2021 approved in principle the winter incentive package on incremental consumption for all domestic, commercial, and general services consumers of ex-Wapda distribution companies from November 1, 2021 till February 28, 2022.

Further, the CCOE directed the Power Division to resubmit the summary with uniform application of package to the consumers of both ex-Wapda distribution companies and K-Electric and discussed that the concessionary rate be evaluated at Rs12.96/kWh.

Accordingly, an incentive package was proposed for all domestic, commercial, and general services consumers of ex-Wapda distribution companies and K-Electric for the winter months; November to February.

The reference period for incremental consumption will be November 2020 to February 2021.

It said that the rate of Rs12.96/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.

The Power Division said that the rate of Rs12.96/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.

The rate of Rs12.96 /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.

The 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 Rs12.96/kWh through benchmark consumption methodology.

No quarterly adjustments would be applicable on incremental consumption.

On incremental consumption, only positive fuel price adjustments shall be passed on to the consumers availing incremental consumption package. Actual subsidy realised for the given proposals shall be independent of all the other budgeted subsidies for the power sector.

The CCOE considered the summary submitted by the Power Division regarding ‘Winter Incentive Package for Electricity consumers on Incremental Consumption’ and approved the proposal.

The CCOE decided to defer the decision on revision in gas tariff slabs for domestic (residential) consumers during the winter months and will consider it again in its upcoming meeting. The cabinet body was briefed about the case as stated in the summary submitted by the Petroleum Division. It was informed that the Petroleum Division had worked out a detailed revision in current domestic gas slabs along with its comparison with LPG, which is an alternate fuel for residential consumers.

It was further informed that there was no change in the gas tariff for the first two domestic slabs, which constituted 78% of total consumers with 57% gas consumption in the domestic supply.

However, rest of the slabs were proposed to be revised. The Petroleum Division submitted revision of domestic gas tariff slabs during the period November 2021 to February 2022 for consideration and approval of the cabinet committee.

The minister for science and technology had stated that no efforts were being made to bring energy efficiency, adding that there is a need to bring changes in consumer behaviour by introducing smart appliances as well. It was agreed that there is a need to introduce energy efficient appliances and the PSQCA can play a leading role in this regard.

The CCOE constituted a committee under the chairmanship of the minister for science and technology to recommend the measures/incentives that can promote the usage of energy efficient appliances (electric & gas). The committee shall submit its report to the CCOE in one month.

Published in The Express Tribune, September 26^th, 2021.

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