Islamabad – The Economic Coordination Committee (ECC) of the cabinet has endorsed a proposal to shift the annual electricity tariff re-basing timeline from July 1 to January 1, aiming to alleviate consumer burden during high-consumption summer months.
The power division’s proposal seeks to stagger the cumulative impact of quarterly tariff adjustments (QTAs), fuel cost adjustments (FCAs), and annual tariff revisions into low-consumption winter months. However, National Electric Power Regulatory Authority (Nepra) Chairman Waseem Mukhtar cautioned that implementing the proposal by January 2025 would be impractical due to legal and regulatory constraints. He suggested deferring it to January 2026.
Power Minister Awais Ahmad Khan Leghari advocated for immediate implementation, proposing a timeline no later than February or March 2025, emphasizing the need to prevent high tariffs during peak summer consumption.
The ECC’s recommendation now awaits federal cabinet approval. The power division has been authorized to seek Nepra’s implementation of the revised timeline, alongside amendments to the legal framework.
The ECC highlighted that shifting the rebasing timeline would help consumers avoid a financial shock during summer, which often leads to public dissatisfaction and protests.
Additional Approvals
Supplementary Grants: The ECC approved Rs2.9 billion in grants for various sectors, including Rs910 million for establishing a National Food Safety Authority and Rs935.75 million for Pakistan Steel employees’ salaries.
Steel Regulatory Duties: Regulatory duties on finished flat steel products were extended until March 31, with a directive against further extensions.
Afghan Transit Trade: The ECC replaced bank guarantees for Afghan transit trade via Gwadar Port with insurance guarantees to facilitate imports under APTTA.
Budget Proposals: The ECC reluctantly approved FY2024-25 budget proposals from the Ministry of Overseas Pakistanis but expressed dissatisfaction over delays in their submission.
These decisions reflect the ECC’s efforts to balance regulatory adjustments with public welfare and sectoral needs.
