ISLAMABAD: The government on Wednesday allowed K-Electric to pass on fuel charge adjustments on to its consumers, while approving $142 million for settling liabilities of PIA-owned hotel in the US.
Adviser to the Prime Minister on Finance and Revenue Hafeez Shaikh took the decision during a meeting of the Economic Coordination Committee (ECC) of the cabinet at the cabinet division.
The ECC approved the summary moved by the power division for the rationalisation of 11 quarterly adjustments of K-Electric from July 2016 to March 2019.
“The quarterly adjustments of K-Electric for period from July 2016 to March 2019 will be notified with effect from 1st September 2020 to bring the tariff of K-Electric at par with what is currently in filed for consumers of (X-WAPDA) distribution companies,” the finance ministry said in a statement.
The fuel charge adjustment decision was delayed for months to save people from swelling electricity bills. Previously, the National Electric Power Regulatory Authority (Nepra) announced fuel charge adjustment for November 2019 to June 2020, which was to be passed on to the consumers across the country in August and September.
K-Electric has already adjusted Rs1.2 billion retrospectively to consumers on account of bank charges and meter rents from July 2016 in line with the revised multi-year tariff. The decision was according to the Nepra’s tariff terms and conditions notified by the power division. There was no increase in tariffs for residential consumers having consumption of up to 300 units.
KE has more than 2.5 million consumers across Karachi, Dhabeji and Gharo in Sindh, and Uthal, Vinder and Bela in Balochistan.
The ECC further approved $142 million for clearing debt and liabilities of New York-based Roosevelt Hotel owned by Pakistan International Airlines Investment Limited.
The finance ministry said the decision was taken to help the luxury hotel deal with the financial challenges and on the recommendation of the committee constituted in a meeting earlier this month.
The committee was headed by deputy chairman planning commission and including secretaries of finance, aviation and law and justice divisions.
The ECC earlier this month approved settlement of $105 million worth of liabilities and responsibilities resulting from a debt secured by the PIA-owned Roosevelt Hotel.
The government planned to sell the hotel or formulate a joint-venture to generate funds for the loss-making flag carrier. The US President Trump had expressed interest in buying the hotel.