Electricity consumers using over 300 units likely to get big relief in winter season

ISLAMABAD – The electricity consumers using more than 300 units per month are likely to get a relief of Rs6.50 to Rs 10 pèr unit in winter season after the CCoE approved the winter incentive package on incremental consumption for all domestic, commercial and general services consumers.

The Cabinet Committee on Energy (CCoE) Friday deferred the upward revision of gas tariff slabs for the domestic consumers for the four months of winter season 2021-22 and constituted a committee to submit its recommendations within 30 days on the measures to ensure use of energy efficient appliances.

A meeting of the Cabinet Committee on Energy (CCOE) held here under the chairmanship of the Federal Minister for Planning, Development and Special Initiatives Asad Umar approved the winter incentive package on incremental consumption for all domestic, commercial and general services consumers of XW-DISCOs and K-Electric from 1st November 2021 till 28th February 2022. It is worth mentioning here that on September 13, 2021, the CCOE had approved the winter incentive package for electricity consumers fixing the rate of incremental consumption at Rs 12.96 per unit. The CCoE had also directed Power Division that KE consumers should also be included in this package. 

Following the directives, the Power Division submitted a revised summary on the incentive package for electricity consumers and included KE consumers in it. It was informed that due to limited availability of natural gas during winter months in the recent years the consumers need an alternative affordable resource for meeting the heating requirements. For his, the consumers can switch to electric heaters for heating requirement as an alternative if the same is available at discounted rates. In 2020, to address the same, a discount on increment consumption namely Use more Pay Less Package was offered for the period of November 2019 till February 2020 by offering a rate of Rs 11.97/KWh for incremental consumption. The discount available to domestic, commercial industrial consumers of XW-DISCOs and yielded a growth of 16% in consumption. 

Any increase in the incremental consumption for heating through electricity is aligned with the long-term trajectory of the energy efficiency conservation objective. Moreover, it will enable optimum use of system generation capacity. 

Hence the winter incentive package for electricity consumers from 1st November 2021 to 28th February 2022 was submitted and approved by CCoE.  

The reference period for incremental consumption will be November, 2020 to February, 2021; 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 reference period, whichever is greater; 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 reference period; 

A tariff 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 reference period. CCoE approved the summary submitted by Power Division on the winter incentive package on incremental consumption for all domestic, commercial and general services consumers of XW- DISCOs and K- Electrics from 1st November 2021 till 28th February 2022.

The tariff for the consumers using above 300 units is Rs19.46 per unit to 23 per unit. As a result of the package, the consumers can save from Rs 6.50 per unit to Rs 10 per unit during the four winter months. CCoE also considered revision of gas tariff slabs for the domestic consumers during winter season of FY 21-22 submitted by Petroleum Division. The forum discussed the agenda in detail and said that gas is a precious energy resource and resultantly import of LNG is a large drain on Pakistan’s foreign exchange. It constitutes a major part of the country’s total imports and consumer spending. It is now critically important to realise both on individual and national level that energy resources need to be conserved by switching to energy efficient appliances.  

A committee headed by Minister for ST Shibli Faraz has been formed. Other members of the committee are Secretary Petroleum, Secretary Power and member energy Planning Commission. This committee will give its recommendations within 30 days on the measures to ensure use of energy efficient appliances through various fiscal and administrative incentives along with regulatory actions to be taken to promote these appliances to rationalize the consumption, reduce consumer’s monthly expenses and resultantly reducing the country’s energy import bill.The meeting was attended by Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum Revenue, SAPM on CPEC and representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

Article source: https://nation.com.pk/18-Sep-2021/electricity-consumers-using-over-300-units-likely-to-get-big-relief-in-winter-season