Govt slaps Rs1.5 per unit power surcharge on Karachiites

The Economic Coordination Committee (ECC) of the cabinet on Wednesday allowed the K-Electric — a sole power distribution company in Karachi — to recover a surcharge of Rs1.52 per unit from its consumers in the next 12 months.

The decision was made during a meeting of the ECC held with Finance Minister Ishaq Dar in the chair in Islamabad today.

During the meeting, the Ministry of Energy (Power Division) submitted a summary regarding quarterly tariff adjustments of K-Electric and informed that as per National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for the KE and state-owned distribution companies.

Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country, read a statement issued by the finance ministry.

The ECC further allowed the release and utilisation of the available budget of Rs76 billion as payment of arrears under different heads.

The ECC considered another summary of the Ministry of Energy (Power Division) regarding the implementation of a revised circular debt management plan and utilisation of Rs20.726 billion to government-owned power plants.

The committee after discussion authorised Power Division to utilise a one-time full amount out of the assignment account in relaxation of the limit of using Rs4 billion per month during June 2023 for the next five months and to ensure that there will be no more payment liability to IPPs for the period July to November 2023.

Read more: NEPRA approves Rs10.80 per unit negative adjustment for KE

The meeting also considered and approved another summary of Power Division regarding the release of Rs56 billion as approved under revised CDMP against the AJ&K receivables.

In addition to approving various summaries, the ECC also approved Rs1,914.83 million in technical supplementary grants for various ministries and divisions.

The ECC also approved another summary of the Ministry of Commerce regarding an amendment to a relevant clause in the Import Policy Order 2022 to allow government agencies to import pharmaceutical raw materials.

The ECC approved various Technical Supplementary Grants (TSG) including Rs567.120 million in favour of the Ministry of Federal Education and Professional Training for its development expenditure and Rs40 million in favour of the Ministry of Federal Education and Professional Training for Cadet College Hassanabdal for need-based scholarships to financially challenged students.

The committee approved Rs14.022 million as TSG in favour of the Federal Tax Ombudsman for ERE expenditure; Rs19.236 million as TSG in favour of the Ministry of Interior for Repair and Maintenance of Helicopter by Pakistan Rangers; Rs6.279 million as TSG in favour of the Directorate General of Immigration and Passports and Rs150 million as TSG in favour of Intelligence Bureau to meet its ERE expenditure.

The ECC approved Rs147.913 million as TSG in favour of Gilgit-Baltistan Council and its departments; Rs500 million in favour of the Ministry of Housing and Works for the execution of development projects and Rs470.26 million in favour of the Ministry of Housing and Works for Repair and Maintenance of Supreme Court of Pakistan building, Islamabad and judges residences, rest houses and sub-offices in various cities.