Cabinet body approves concessional tariff for power consumers in winter

ISLAMABAD: A cabinet body on energy Monday approved a concessional power tariff for consumers during the winter season spanning over November 2021 to February 2022, ARY NEWS reported.

The meeting headed by Federal Planning and Development Minister Asad Umar decided that a concessional power tariff that would also include K-Electric consumers would be offered during four months of winter- 01 November 2021 to 28 February 2022.

The meeting also directed the petroleum division to provide a mechanism for gas pricing from November to February.

The cabinet body also approved Pakistan Oil Refining Policy 2021 and directed the petroleum division to review a relief package for the refineries operating currently.

The Asad Umar-led body also reviewed a report over implementation on agreements with the IPPs and approved payment to 11 IPPs after approval of the final report.

However, the meeting once again reiterated that IPPs would not get payments over active NAB cases.

In July, Federal Minister for Energy Hammad Azhar said that the Economic Coordination Committee (ECC) approved a financial mechanism for government-owned IPPs, paving the way to bring down the circular debt by Rs116 billion.

“This means that the receivables and payables between government entities have been balanced against each other,” he said adding that it would lead to a reduction of Rs 116 billion in the circular debt stock.

According to sources privy to details of the ECC meeting headed by Finance Minister Shaukat Tarin, the committee approved adjustments of payables against the Atomic Energy Commission and Neelam Jhelum hydropower project.

“The meeting also approved adjustments in payables and receivables of WAPDA and NTDC,” they said while confirming that it would bring down the debt cycle by Rs116 billion.