ISLAMABAD: The Ministry of Finance has proposed that electricity supply to Azad Jammu and Kashmir (AJ&K) should be billed directly to the Government of AJ&K (GoAJ&K) at the prevalent basket price, aligning it with the billing system used for K-Electric and other distribution companies (Discos), according to well-informed sources speaking to Business Recorder.
This recommendation was made in response to a proposal from the Power Division, which suggested that electricity supplied to AJ&K should be charged at the National Average Power Purchase Price (NAPP) for Discos, as determined by NEPRA, inclusive of transmission and distribution (T&D) losses and other relevant costs.
However, the Finance Division emphasized that, as per a 2019 decision by the Economic Coordination Committee (ECC), monthly invoicing should be conducted by the Central Power Purchasing Agency (CPPA) based on the basket price. The Finance Division also backed the application of Fuel Charges Adjustment (FCA) and Quarterly Tariff Adjustments (QTA) to AJ&K.
The Power Division’s summary on the new tariff mechanism for AJ&K is expected to be submitted to the ECC soon.
Story by Mushtaq Ghumman
