ECC abolishes peak-hour electricity tariff for industry

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the abolishment of Time-of-Use (ToU) tariff scheme for industrial consumers.

The ECC meeting was chaired by Adviser to Prime Minister (PM) on Finance and Revenue Dr Abdul Hafeez Shaikh in Islamabad, according a statement issued by the finance ministry.

Privatisation Minister Muhammadmian Soomro, Economic Affairs Minister Makhdoom Khusro Bakhtiar, Railways Minister Sheikh Rasheed Ahmed, Adviser to PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar and Adviser to PM on Institutional Reforms and Austerity Dr Ishrat Hussain were also present on the occasion. State Bank of Pakistan (SBP) Governor Dr Reza Baqir joined the meeting via video link.

During the meeting, the Power Division presented the case for abolishment of tariff scheme to spur industrial activity amid Covid-19 pandemic “by removing the distinction between the current system of peak and off-peak hours as part of the government industrial support package”.

The underlying rationale is to incentivise industrial units to operate round the clock and produce greater output during testing times.

Consequently, the ECC accorded in-principle approval to a proposal regarding an amendment in the respective SROs, both for the XWDISCOS and K-Electric, to charge off-peak rates against peak hours.

The abolishment of peak and off-peak tariff structure would be implemented with effect from November 1 till April 30, 2021.

- Advertisement -
- Advertisement -

Must Read

Pakistan, Iran to finalise FTA within next six months

ISLAMABAD: Federal Minister for Commerce Syed Naveed Qamar on Thursday said that Iran and Pakistan will give final shape to the proposed bilateral Free...