ECC approves Rs96.133bn as second installment to IPPs

The Economic Coordination Committee (ECC) of the Cabinet has given the go-head to pay Rs96.133 billion (60%) second installment to the Independent power producers (IPPs).

Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the ECC of the Cabinet at the Finance Division.

On the summary of the Ministry of Energy, Power Division, ECC approved Rs96.133 billion to Power Division for payment to the IPPs as second installment (60% payment).

The government last year paid Rs90 billion,  against total Rs403 billion payable, as first installment to 35 IPPs.

In another summary Ministry of Energy, Power Division submitted on tariff rationalization for the power sector. As per National Electricity Policy 2021, the Government may maintain a uniform consumer-end tariff for K-Electric and state owned distribution companies. Accordingly, KE applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country.

The ECC approved tariff rationalization for K-Electric by way of adjustments of Rs0.571 per unit with a recovery period of three months. Further, NEPRA is to issue revised schedule of tariff determined for the quarter October to December, 2021, or incorporate in the latest schedule of tariff for the quarter Jan- March 2022 after incorporating tariff rationalization.

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