As non-stop raise in electricity tariff is hitting consumers across the board, General Headquarters (GQH) through Ministry of Defence (MoD) has approached National Electric Power Regulatory Authority (NEPRA) for 50 per cent rebate to Commissioned Officers on electricity bills, well informed sources in NEPRA told Business Recorder.

This request was despatched by the GHQ, Quarter Master General Branch, Director Works and Chief Engineer (DG&CE) Army.

The communication says that the rebate on electricity charges for Army Officers was fixed by the GoP @ 25% in 1985. The rebate was revised @ 50% on electricity units consumed vide SRO No. (1)/96. However, other charges/ taxes, as notified from time to time, are required to be paid in full by the Officers in as per rates mentioned in schedule of electricity tariff for ex-Wapda Companies effective from August 13, 2002. Revision of rates for WAPDA (now Distribution Companies-DISCOS) was issued in a letter No. 2290-2315/GMCS/Tariffs/T-150 (Vol-lx) on August 20, 2002.

According to DG&CE, Military Engineering Services (MES) continued the practice of giving rebate @ 50% on energy charges in the light of notifications. However, Discos, later on, amended the rates in the name of variable and other charges, i.e., variable charges, sale rates of electricity per Kwh, which covers the unit price. Other charges include additional cost to cover taxes/ surcharges such as financial cost surcharge, fuel price adjustment, Electricity Duty, Neelum Jhelum Surcharge, Tariff Rationalization Surcharges and GST.

“MES is giving refund @ 50% to be calculated on the basis of energy charges instead of variable unit charges. This has curtailed the electricity bills rebate to around 3.5% instead of 50% to Army officers,” said Director DG&CE in his communication with Nepra.

In view of above, a case for amendment was initiated with MOD, which has asked to get views/ comments of NEPRA and Power Division as required in terms of Rule 18(4) of this Rule of Business 1973.

Last year, Ministry of Defence had drafted a summary for the Cabinet titled “NFC- 50 per cent rebate to commissioned officers on electricity bills” and sent to Finance Ministry for comments.

Ministry of Finance, while commenting on the proposal said that proposed draft summary for the Cabinet has been examined in Finance Division (MF wing) and argued that since the matters concerning electricity bills fall under the purview of Power Division, Defence Ministry should approach Power Division or Nepra for guidance as required in terms of Rule 18 (4) of the Rule of Business, 1973. However, instead of getting the requisite guidance, only an old reference of December 2, 2008 from Nepra was added which does not serve the purpose as there is no elaboration.

Finance Division also requested Ministry of Defence, to get specific input/ recommendations from Power Division/Tri Services and again repeated specific input/ recommendations from Power Division/ Tri-Services (not only GHQ) through self-contained note, highlighting background of the case and circumstances leading to reduced rebate benefits as required in terms of Rules 18(4) of the Rule.

Electricity prices have been increased by about 60 per cent by the incumbent government and it is preparing for another increase in base tariff up to Rs 0.95 per unit for consumers to be effective from February 1, 2022. The subsidy rationalization plan will massively hit the middle-income group consumers who use 200-400 units monthly.

The story was originally published in Business Recorder on January 31, 2022.