NEPRA accepts Energy Ministry request for rationalization of subsidies

Sep 23, 2021: The National Electric Power Regulatory Authority (NEPRA) on Thursday accepted the request of Energy Ministry for rationalization of subsidies as the Government presented their vision of provision of subsidies through Ehsaas Program by linking residential electricity meters with CNICs, as it would become possible to use Ehsaas socio-economic registry for provision of electricity subsidy.

The Authority issued determination in the matter of Policy Guidelines forwarded by the Ministry of Energy (MoE) under Section 31 of Regulation, Generation, Transmission Distribution of Electric Power Act, 1997 for providing basis for Re-Targeting Power Sector Subsidies in future, said a press release.

The Authority approved Phase-I of the program only, keeping the consumers’ rights prime, after ensuring that it has no financial implication on consumers.

The MoE has been directed to ensure provision of detailed workings including financial impact on each category of consumers, at the time of submission of Phase-II and Phase-III to the Authority.

The Authority would independently process Phase-II and Phase-III on its merits and would only consider it if the Authority is satisfied after making its own due diligence and following the due process of law.

Non-Time of Use (ToU) consumers have been bifurcated into two blocks of Protected and Unprotected categories and the 301-700 slab has been bifurcated into four slabs i.e. 301-400, 401-500, 501-600 & 601-700 with the same tariff. Thus, having no financial impact on the consumers.

The Definition of Life Line Consumer has been modified to include consumption upto 100 units (presently lifeline includes upto 50 units), having maximum of last twelve months and current month's consumption less than 100 units; two rates for less than 50 and less than 100 units would continue.

A new category of Protected consumers has been created for consumer consuming less than 200 kWh per month consistently for the past 6 months.

APP