ISLAMABAD: The government has approved a detailed mechanism to ensure that the levy collected from captive power consumers is passed on as relief to electricity grid consumers, according to official documents.
As per the framework, the Petroleum Division will remit the collected levy amount to the Finance Division within two days after the end of each month. For example, the levy collected in January will be transferred by February 2. On the same day, the Finance Division will notify the Power Division and transfer the amount to the Central Power Purchasing Agency (CPPA) for onward credit issuance or cash disbursement to power distribution companies (DISCOs) and K-Electric.
The Power Division will then inform the Pakistan Petroleum Management Company (PPMC) about the levy collected for the month. Based on electricity sales data provided by Power Information Technology Company (PITC) in case of DISCOs and K-Electric, PPMC will calculate the per-unit benefit and submit the details to NEPRA for approval, enabling the relief to be passed on to consumers.
The per-unit monthly levy benefit will be determined using the formula:
Levy Collected in a Month ÷ Net Units Sold to Entitled Consumers in a Month.
Net entitled units will be derived by deducting the units sold to lifeline consumers from the total units sold by DISCOs and K-Electric during the billing month.
According to the mechanism, NEPRA will issue its determination each month after due diligence. The relief, however, will be passed on with a lag of one month. For instance, the levy collected in January will be calculated by mid-February and reflected in consumers’ March bills based on their January consumption.
This decision was taken by the Economic Coordination Committee (ECC) of the Cabinet on Tuesday under the chairmanship of Finance Minister Muhammad Aurangzeb.
