Power Division has cleared subsidy claims of zero-rated industrial consumers till March 2022 The Power Division has reportedly sought over Rs84 billion to ensure supply of electricity to five export-oriented (erstwhile zero rated) sectors at concessionary rate of 9 cents per unit, well-informed sources told Business Recorder.

Five export-oriented sectors: PD seeks over Rs84bn to ensure power supply at concessionary rate

Power supply The Power Division, in its comments on Ministry of Commerce’s summary “regionally competitive energy rates for export-oriented sectors during FY2022-23 (effective from July 1, 2022),” said that it has cleared the subsidy claims of zero-rated industrial consumers till March 2022 amounting to Rs26 billion and the package continued till June 30, 2022 without additional budget available. On the request of Power Division, Commerce Division initiated a summary for additional supplementary grant during the month of May 2022 however, no decision/allocation/releases were made to the power sector to meet the pending subsidy claims. According to Power Division, as of June 30, 2022, pending claims of zero-rated consumers of Discos and KE for the FY 2021-22 are Rs26.207 billion, which are required to be cleared from current year allocation of Rs20 billion. The Power Division requires an additional allocation of Rs6.207 billion as supplementary grant for clearing previous year liability.

For current financial year, Power Division requires an amount of Rs77.957 billion as additional budgetary allocation as supplementary grant during CFY2022-23 for provision of concessional tariff to export oriented industries for consumption during the year. Power supply to export sectors at low rates: More funding contingent on IMF’s consent, ECC told The Power Division stated that the package will be notified for billing once the subject supplementary of Rs84.164 billion is approved/ released to the Power Division. In case government approves less allocation, then Power Division will reduce the application of package proportionally for such months/ days as can be met from such allocation, the sources said, adding that on the arguments of Power Division and Finance Division, electricity concessional tariff has been kept limited to only three months.

Source: This news is originally published by brecorder

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