NEPRA approves Rs12.96 per unit winter package

November 4, 2021 (MLN): National Electric Power Regulatory Authority (NEPRA) on Wednesday approved the Winter Package of Rs12.96 per unit on incremental consumption for residential, commercial and general services consumers as proposed by the Ministry of Energy.

The package will be applicable for the winter months i.e., from Nov 1, 2021, till Feb 28, 2022.

To recall, on October 6, 2021, the Ministry of Energy (MoE) Power Division (PD) had submitted the proposed Winter Incentive Package for all domestic, commercial and general services consumers of DISCOs and K-Electric.

According to the decision of NEPRA, a rate of Rs.12.96/kWh shall be charged to Domestic consumers (Non-ToU) on the incremental consumption, above monthly 300 units or above the reference consumption in the corresponding months of the reference period, whichever is greater.

A rate of Rs.12.96 /kWh shall be charged to commercial consumers (Non-ToU) and general services consumers on the incremental consumption above the reference consumption in the corresponding months of the reference period.

Rate of Rs.12.96/kWh shall be charged to domestic consumers (ToU) and commercial consumers (ToU) on the respective peak/off-peak incremental consumption, above the reference peak/off-peak consumption in the corresponding months of the reference period.

New and existing consumers having no reference consumption available in the period of November 2020 to February 2021 shall be offered the same package at the concessionary rate of Rs.12.96/kWh through benchmark consumption methodology.

NEPRA also declared that no quarterly adjustments would be applicable on incremental consumption. On incremental consumption, only positive fuel price adjustments shall be passed on to the consumers availing incremental consumption package. Actual subsidy realized for given proposals shall be independent of all the other budgeted subsidies for the power sector.

For K-Electric, the Authority approved the winter incentive package in principle, however, since the mechanism for verification of Marginal cost and adjustment in tariff of K-Electric for incremental sales requires detailed workings/calculations & discussions with MoE, therefore, a separate decision in this regard will be issued, once the required mechanism is finalized and comments! input is received from the MoE on the submissions of K-Electric made vide letter dated 29.10.2021.

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