The Economic Coordination Committee (ECC) of the Cabinet has decided to approve an increase in K-Electric’s tariff up to Rs. 2.89 per unit from September 1, 2020, and a subsidy of Rs. 4.7 billion was also provided to the entity on account of tariff differential.
Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Cabinet Division.
With this increase, the KE’s tariff would be on par with other power distribution companies.
ECC also approved the summary moved by the Power Division for the rationalization of eleven quarterly adjustments of K-Electric Limited from July 2016 to March 2019.
The quarterly adjustments of K-Electric for the period from July 2016 to March 2019 will be notified with effect from 1st September 2020 to bring the tariff K-Electric at par with what is currently filed for consumers of (X-WAPDA) other DISCOs.
The increase in KE tariff was also approved by the ECC meeting on July 3, 2020, however, the decision was not endorsed by the federal cabinet, thus, the implementation of tariff increase did not happen.
In order to meet the financial challenges faced by Roosevelt Hotel, New York, ECC approved the amount up to $142 million for PIA-IL on the recommendation of the committee constituted in an earlier meeting, headed by Deputy Chairman Planning Commission and including Secretaries of Finance Division, Aviation Division and Law and Justice Division.