The government has decided to create new categories of power tariff for consumers ostensibly to reduce the volume of subsidy and the Ministry of Energy has asked National Electric Power Regulatory Authority (NEPRA) to take a decision in this regard.
By Ahmad Ahmadani
As per details, Ministry of Energy (Power Division) vide request dated 09-06-2021 has filed policy guidelines with NEPRA under section 31 of Regulation, Generation, Transmission, Distribution of Electric Power Act, 1997 for providing basis for re-targeting power sector subsidies in future.
The Ministry (MoE) in the said guidelines, requested the NEPRA for incorporation of some modification/adjustment in power distributing companies (DISCOs) including K-Electric (KE) schedule of tariff (SoTs) as well as uniform SoT as was determined by NEPRA and notified through different SROs including the KE Schedule of Tariff (SoT) currently in field.
The Energy Ministry has requested NEPRA to expand the definition of lifeline consumers to include the residential Non-Time of Use (ToU) consumers having maximum of last 12 months and current month’s consumption of 100 units. Two tariff rates for 50 and 100 units will continue.
NEPRA has also been requested to create a new category of protected consumers which include those consuming 200 units (kWh) per month and consistently for the past six months.
The Ministry of Energy has further requested NEPRA to break the 301-700 slab into four slabs-301-400, 401-500, 501-600 & 601-700 with the same marginal tariff. And, each of these slabs would continue to get the previous slab benefit of 300 units as today.
Sources in the power sector informed that approximately eight (08) million power consumers will be out of the subsidy net in the first phase after the implementation of the said decision. At present, 22 million electricity consumers are getting the subsidy which, however, will be limited to 13.9 million consumers.
According to NEPRA’s hearing notice regarding policy guidelines for providing basis for re-targeting power sector subsidies in future, the Authority (NEPRA) has decided to hold a hearing on August 09, 2021 (Monday). And, following issues have been framed for discussion and presenting response by the MoE during the hearing;
What is the financial impact of the policy guidelines on different category of consumers as well as on DISCOs?
Whether the proposed guidelines shall be applied retrospectively or prospectively?
It is pertinent to mention that NEPRA through a notice has invited all the interested/affected parties to raise written/oral objections as permissible under the law at a hearing scheduled on 9th August 2021. Similarly, ancopy of the Policy Guidelines provided by the Ministry of Energy (Power Division), Act Rules and the determinations of the Authority are available at NEPRA website.
Originally published at Profit Pakistan today