K-Electric gets go-ahead to charge Rs1.5 per unit from Karachiites
Karachiites should be prepared for a further rise in electricity bills as a result of prolonged and unannounced loadshedding by K-Electric (KE). As a result of the cabinet’s Economic Coordination Committee (ECC), the sole power distributor in the port city was permitted to charge a surcharge of Rs1.52 per unit within a 12-month period.
Finance Minister Ishaq Dar chaired today’s ECC meeting in Islamabad during which the decision was taken.
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In the meeting, the Ministry of Energy (Power Division) presented a summary of K-Electric’s quarterly tariff adjustments and informed the meeting that the government may maintain a uniform consumer-end tariff for KE and state-owned distribution companies under National Electricity Policy 2021.
In order to maintain uniform tariffs throughout the country, the KE applicable uniform variable charge needs to be modified.
Furthermore, the ECC approved the release and use of Rs76 billion to pay arrears under various headings.
A summary from the Ministry of Energy (Power Division) about the revised circular debt management plan and the utilization of Rs20.726 billion by government-owned power plants was considered by the ECC.
The committee after discussion authorised Power Division to use a one-time full amount out of the assignment account in order to relax the limit of using Rs4 billion per month during June 2023 for the next five months and to ensure that there will be no further payments due to IPPs in July to November 2023.
In addition, the meeting approved the release of Rs56 billion against AJ&K receivables under revised CDMP as approved by the Power Division.
The ECC also approved technical supplementary grants for various ministries and divisions totaling Rs1,914.83 million.
In addition, the ECC approved another summary of the Ministry of Commerce regarding an amendment to a relevant clause in the Import Policy Order 2022 allowing government agencies to import pharmaceutical raw materials.
A number of Technical Supplementary Grants (TSG) were approved by the ECC, including Rs567.120 million for the Ministry of Federal Education and Professional Training to fund its development expenditure, and Rs40 million for need-based scholarships to students at Cadet College Hassanabdal from the Ministry of Federal Education and Professional Training.
For ERE expenditure, the committee approved Rs14.022 million as TSG in favor of the Federal Tax Ombudsman; Rs19.236 million as TSG in favour of the Ministry of Interior for the repair and maintenance of a helicopter by Pakistan Rangers; Rs6.279 million as TSG in favor of the Directorate General of Immigration and Passports and Rs150 million in favor of the Intelligence Bureau.
The ECC approved Rs147.913 million as TSG in favour of the Gilgit Baltistan (GB) 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 for the repair and maintenance of the Supreme Court building in Islamabad, judges’ residences, rest houses, and sub-offices in various cities.