PM’s Kissan Package: Rs3.60/unit cut in power tariff for agri tube wells

ISLAMABAD: In the preview of Prime Minister’s recently announced Kissan Package, the National Electric Power Regulatory Authority (Nepra) on Tuesday issued its final decision and cut the power tariff for nearly one million agricultural tube wells by Rs3.60/unit effective from November billing.

This subsidised power supply through all the state-run distribution companies (Discos) and privatised K-Electric to agriculture tube wells would have a financial impact of Rs28 billion as a subsidy to help boost the agriculture sector’s productivity.

The tariff has been cut by Rs3.60/unit from earlier Rs16.80/unit. This decision will be applicable to the monthly bills of November 2022 and the government will pay this amount under the head of subsidy, the decision reads.

It may be noted on October 31, Prime Minister Shehbaz Sharif announced Rs1,800 billion Kissan Package that included provision of free seeds and inexpensive loans, bringing down the prices of fertilisers and electricity for tube wells and 50 percent relation in taxes on the import of used tractor.

The Ministry of Energy, Power Division (MoE, PD) on December 13 had requested the Authority to share its concurrence regarding the Kissan

Package for a reduction in the price of electricity for private agriculture consumers, said Nepra’s decision.

It added the Authority has considered the request of the Ministry and observed the Ministry has not requested any change in the Nepra-determined tariff/Revenue Requirement of DISCOs, rather has submitted the proposed relief of Rs3.60/kWh in the current base tariff of private agriculture consumers, will be picked up as Additional Supplementary Grant in the head of TDS.

“In view thereof, the Authority has no objection to the instant proposal, as it does not have any impact on NEPRA determined tariff, hence, approved. No adjustment on this account will be allowed in the tariff determination of DISCOs,” reads decision.

Besides, Nepra on Tuesday also completed a hearing on an application of the federal government seeking uniform tariffs for Discos and the K-Electric. Nepra will issue its

decision in the coming few days.