CCOE endorses proposed draft National Electricity Policy 2021

ISLAMABAD   –  The Cabinet Committee on Energy (CCOE) Thursday endorsed the proposed draft National Electricity Policy 2021, directing the Power Division to incorporate the agreed recommendations and submit the same to the Cabinet and CCI for final approval. 

A meeting of the Cabinet Committee on Energy (CCOE) was held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar here. 

The meeting was informed that the proposed National Electricity Policy 2021 was aimed at ensuring universal access of electricity through a self-sustainable power sector, developed and premised on optimal utilization of indigenous resources; integrated planning approach; efficient and liquid market design; and, affordable and environment friendly outcome for the consumers. 

Secretary Power Division briefed the CCoE on the salient features of the Electricity Policy including its principle objectives and details of the proposed actions. Representatives from the provincial governments also participated in the meeting.

After detailed discussion and taking into account the observation and suggestions of the representatives of provincial governments, the Committee directed the Power Division to incorporate the agreed recommendations and submit the same to the Cabinet. Following Cabinet endorsement, the policy would be presented to the CCI for final approval. 

The meeting was attended by Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, SAPM on Petroleum Nadeem Babar, Secretary Energy Punjab, Secretary Energy KP, Secretary Energy Sindh, Secretary Energy Balochistan and official of various divisions.

Meanwhile, Nepra has proposed up to 256.61 per cent increase in transmission license fee, up to 60.47 per cent increase in generation license fee and up to 33.72 per cent in distribution fee for the electricity.

Nepra has invited comments for modification in fee for grant, extension of terms or modification of licenses for generation, transmission and distribution of electricity.

For application & modification generation license fee, an increase of 60.47 per cent has been proposed in the fee for 1MW to 10MW which will increase the fee from the existing Rs 186944 to Rs 300000, for 10 MW to 20 MW by 6.98 per cent which will enhance the current fee from Rs 280416 to Rs 300000, for 20 to 50MW increase by 33.7298 per cent from Rs 373888 to Rs 500000 and for 50MW to 100MW by 60.47 per cent from Rs 467360 to Rs 750000. Similarly, for the generation of above 100 MW the fee has been also increased by 60.47 per cent from Rs 934720 to Rs 1500000. 

It has been proposed that the transmission fee for national grid company should be increased by 113.9678 per cent from Rs 467360 to Rs 1000000, fee for special purpose transmission has been increased by 256.61 per cent from Rs 280416 to Rs 1000000. Similarly, a new slab for provincial grid company has been introduced with a fee of Rs 1000000.

For application & modification of distribution license fee, it has been proposed that the fee for up to 5MW should be increased by 33.7298 per cent from Rs 373888 to Rs 500000. However, the existing fee for up to 1MW was Rs 93472 which will also go up to Rs 500000 from 439.9195 per cent, similarly the fee for 1 to 2 MW is Rs 140208 which will also go up by 256.6130 per cent to Rs 500000.The fee from more than 5 to 10 MW and more than 10 MW to 25 MW has been proposed to be increased by 33.7298 per cent. After the increase the fee of 5 to 10 MW will go up to from the existing Rs 560832 to Rs 750000 and for more than 10 MW to 25 MW it will go up from the existing Rs 1121664 to Rs 1500000.The fee for more than 25 MW will go up to Rs 2500000. Currently, there are separate slabs for up to 50 MW and above 50 MW with the fee of Rs 1869440 and Rs 2336800 respectively.

For electric power supply of up to 20MW Rs 750000, for more than 20 up to 50 MW Rs 1500000, more than 50 MW up to 100 MW Rs 2500000 and for above 100 MW Rs 3000000 fee has been proposed.

NEPRA has asked for the interventionist comments in the matter of proposed fee hike within one month.