ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday allowed the Power Division to notify Rs5 per unit reduction in electricity rates for domestic and commercial consumers announced by Prime Minister Imran Khan on Feb 28.

“The instant decision is being intimated to the federal government for the purpose of notification in the official gazette within 30 days as per the Nepra Act,” said the regulator in a letter issued to the power, finance and cabinet divisions.

It said that since the government had not sought any change in tariff determined by Nepra but had committed a Rs106 billion supplementary grant in the budget for four months at the rate of Rs26.5bn per month, the regulator had no objection to the discounted tariff.

Nepra said the Ministry of Energy had requested for approval of the incentive package announced by the prime minister regarding reduction in electricity tariff on March 18. The regulator instantly approved the request and provided its notification the same day.

Nepra said the Power Division repo­rted that the Economic Coordination Committee (ECC) of the cabinet had on March 7 cleared a summary to that effect declaring the distribution companies (Discos) and K-Electric’s commercial consumers having a sanctioned load of less than 5kW and domestic non-TOU (time of use) consumers having a monthly consumption of up to 700 units (except lifeline consumers) as eligible consumers for PM’s relief package.

It had also approved PM’s relief package of Rs5 per unit by way of reduction in consumer bill for eligible consumers which will be worked out based on applicable notified schedule of tariff for the relief period of four months (March to June 2022).

The Power Division said the ECC had also “approved supplementary grant of Rs106bn in the head of tariff differential subsidy and release of the same to the Power Division for implementation”.

The subsidy shall be released by the Finance Division and Accountant General of Pakistan Revenue as advance in the beginning of each month divided in four equal installments of Rs26.5bn each. The first installment will be released immediately and the remaining at the start of April, May and June.

Published in Dawn, March 19th, 2022