Kissan Package 2022: NEPRA okays Rs3.60/unit cut in power tariff for private agriculture consumers

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved Rs3.60 per unit reduction in the power tariff for private agriculture consumers, which will be applicable to the agriculture consumers of all DISCOs including K-Electric.

According to NEPRA, the decision on cut in the electricity tariff from Rs16.60/unit to Rs13/unit will benefit the agriculture consumers of all power distributing companies (DISCOs) including K-Electric by Rs28 billion while this decision will be applicable from the monthly bills of November, 2022 and the government will pay this amount under the head subsidy.

The Ministry of Energy, Power Division (MoE, PD) vide letter dated December 13, 2022 has requested the Authority to share its concurrence regarding Kissan Package 2022 for reduction in price of electricity for Private Agriculture consumers, said NEPRA’s decision.

The NEPRA added that the Authority has considered the request of the Ministry and observed that the Ministry has not requested for any change in the NEPRA determined tariff/ Revenue Requirement of DISCOs, rather has submitted that the proposed relief of Rs3.60/kWh in the current base tariff of Private Agriculture consumers, will be picked up as Additional Supplementary Grant in the head of TDS.

“In view thereof, the Authority has no objection to the instant proposal, as it does not have any impact on NEPRA determined tariff, hence, approved. No adjustment on this account will be allowed in the tariff determination of DISCOs,” reads NEPRA’s decision.

Meanwhile, NEPRA on Tuesday completed its hearing on the application of K-Electric under which the K-Electric sought Rs7/unit cut under the head monthly fuel charges adjustment (FCA) for the month of November 2022. However, the NEPRA, after scrutiny of data, has worked out Rs7.43/unit under FCA of November, 2022 for one month.

The NEPRA, in a statement, said that this proposed cut in power tariff on account of FCA of November 2022 will not be applicable on the lifeline consumers, domestic consumers who use 300 units a month, agriculture consumers, and Electric Vehicle Charging Stations (EVCS).

“NEPRA will announce its decision in detail on FCA of November for the consumers of K-Electric after further necessary scrutiny of the data,” said NEPRA.

Besides, NEPRA on Tuesday also completed a hearing on an application of the federal government seeking uniform tariff for the DISCOs and the K-Electric. The hearing was held under the chairmanship Tauseef H. Farooqi wherein NEPRA members Engineer Rafique Ahmed Shaikh, Engineer Maqsood Anwar, and Engineer Motahar Niaz Rana were in attendance.  However, NEPRA will issue its decision later on.

Ahmad Ahmadani
Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected].

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