MoF asks PD to provide year-wise details

ISLAMABAD: The Ministry of Finance has reportedly asked the Power Division to provide year-wise details of Tariff Differential Subsidy (TDS) of K-Electric (KE) arrears for the last five years (reconciled), well-informed sources told Business Recorder.

In a letter to the Power Division, the Finance Ministry has cited reference of Office Memorandum (OM) of the Power Division of April 2, 2024 and a subsequent meeting of April 4, 2024 on budget estimates FY2024-25 held in Finance Ministry under the chairmanship of Additional Finance Secretary (Corporate Finance).

According to the Finance Ministry, following actionable items were highlighted which should be provided by April 19, 2024 for FY 2024-25 budget operations: (i) reconciled KE’s subsidy claims under respective categories till June 2022; (ii) reconciled AJK subsidy from July, 2022 onwards; (iii) forecast subsidy implication of FATA for supply of two hours and four hours electricity along with unit consumption; (iv) year-wise detail of arrears under FATA subsidy against the units supplied;(v) adjustment of advance subsidy provided to the tune of Rs 150 billion during FY 2019-20 and 2020-21; (vi) timeline of AJK tariff issues resolution;(vii) timeline for charging basket price (CPPA-G) to AJK; (viii) detail of proposed payment to IPPs/GPPs; (ix) year-wise Tariff Differential Subsidy (TDS) KE arrears for the last five years (reconciled); and (x) year-wise unpaid subsidies on account of un-verified claims of power Distribution Companies (Discos).—MUSHTAQ GHUMMAN