Incentive Package Announced

DECISION OF THE AUTHORITY IN THE MATTER OF INCENTIVE PACKAGE ANNOUNCED BY THE PRIME MINISTER REGARDING REDUCTION IN PRICE OF ELECTRICITY

1. The Ministry of Energy vide letter dated March 18,  2022 has requested the Authority to approve the Incentive Package announced by the Prime Minister regarding reduction in price of electricity.
2. The Ministry in this regard has submitted that a summary on the above subject was considered by the ECC of the Cabinet and ECC vide decision dated March 07, 2022 decided as under;
3. a) Approved “XWDISCOs and K-Electric commercial consumers having sanctioned
   load  less   than 5   kW  and  domestic  non-TOU  consumers  having  monthly consumption up-to 700 units (except lifeline consumers)” as eligible consumers for PM Relief Package.

1. b) Approved PM Relief Package of Rs.5 per unit by way of reduction in consumer bill
   for eligible consumers for PM relief package, which will be worked out based on

the applicable notified schedule of tariff for the relief period of four months (March 2022 to June 2022).

1. c) Approved Supplementary Grant of Rs.106 Billion in the head of TDS and release the
   same to the Power Division for implementation of PM’s Relief Package.
2. d) The subsidy shall be released by the Finance Division and AGPR as advance in the
   beginning of each month divided in four equal installments i.e. Rs.26.5 Billion each.

The first installment will be released immediately and remaining releases will be required as the start of each month i.e., Arp. 2022, May 2022 and June 2022 and the adjustment will be submitted after due reconciliation subsequently; and

1. e) Authorized the Power division to notify the PM’s relief package based on “(a), (b),

(c), and (d) above.

3. The Authority has considered the request of the Ministry and has 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 Rs.5/kWh will be picked up in the subsidy and shall be reflected by way of reduction in the consumer bills for the eligible consumers.
4. .In view thereof, the Authority has no objection to the instant proposal, thus the same is hereby approved, as it does not have any impact on NEPRA determined tariff. Further, no adjustment on this account will be allowed in the tariff determination of DISCOs.