ECC mulls over summary of electricity tariff hike

ISLAMABAD: Finance Minister Asad Umar is chairing a meeting of Economic Coordination Committee (ECC) to contemplate over an agenda including the proposed increase in power tariff.

According to details, the ECC has taken up a four-point agenda today, wherein the summary of electricity tariff titled ‘Tariff rationalisation for Power Sector’ is on top of the list.

The meeting is further expected to discuss K-Electric shares purchase by Shanghai Electric Power Company Ltd, revision in cess rates of tobacco for the year 2018-19 and a report on Liquefied Natural Gas (LNG) terminals.

During the last meeting, the ECC decided to defer the announcement of increase in electricity tariff until its next meeting.

Moreover, the committee directed the power companies to ensure 100 per cent collection of electricity bills to minimise the losses while instructing National Electric Power Regulatory Authority (NEPRA) and Power Division to prepare a comprehensive plan for the next five years.

ECC was expected to increase price of electricity by Rs 2 per unit. Meanwhile National Electric Power Regulatory Authority had suggested a price hike of over three rupees.

Earlier this month, the PTI government had approved up to 143 per cent increase in natural gas tariff with immediate effect having a cumulative financial impact of about Rs 116 billion. The decision was taken in an Economic Coordination Committee (ECC) session.