Power Division notifies billing by DISCOs for zero-rated industry

January 16, 2020 (MLN): The zero-rated industry would only be charged 7.5 cents/kWh tariff by WAPDA, as per notification issued by Power Division on January 13, 2020.

It was clarified to all DISCOs that Financial Cost Surcharge, Neelum-Jehlum Surcharge, taxes, fixed charges and positive fuel adjustment will not be charged to the zero-rated industry on account of various representation made by All Pakistan Textile Mills Association (APTMA ) and as interim measure subject to confirmation by the Finance Division.

The representations made by APTMA and the financial applications of the matter were discussed with the finance division. On account of no budgetary allocation for the purpose of the aforementioned costs in FY2018-2019 or in the current financial year. The finance division has communicated that being pass-through items, the same should be duly recovered as per tariff notifications from industrial consumers as the subsidy is only meant for the furtherance of pro-poor Government policy.

Therefore, any further subsidy over and above the allocated subsidy, being the differential between the base tariffs notified through SROs 1-10 dated Jan 01, 2019 and SRO 11 dated Jan 01, 2010 for K-Electric and 7.5 cents/KWh towards zero-rated industries, would be contrary to the public interest.

In pursuance of the above, the matter was considered by the Federal Government, and it was decided and clarified that the concessionary rate of 7.5 cents/kWh for zero-rated industrial consumers notified through SRO 12 which was only limited to the extent of a schedule of tariff notified through SRO 1-11 as amended from time to time.

Consequently, all other charges mentioned above are to be billed to the consumers in addition to the already billed components.

Accordingly, the above decision may be implemented forthwith for future billing by DISCOs.

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