The federal government has decided to roll back the recent increase in electricity tariffs for domestic consumers using up to 200 units per month. Prime Minister Shehbaz Sharif chaired a cabinet meeting where this decision was discussed and is likely to be implemented soon.
Sources familiar with the matter mentioned that the government plans to subsidize approximately Rs 50 billion to ease the financial burden of high electricity bills. This relief package is proposed to benefit consumers using 200 units or less monthly, effective from July through September 2024.
Earlier, on July 4, the federal cabinet approved a significant hike in electricity tariffs for residential consumers using 100 to 500 units per month. Initially proposed at Rs 48.84 per unit, the basic tariff would have risen to Rs 57.63 per unit after including sales tax. Additional adjustments and taxes could have increased the maximum tariff to over Rs 65 per unit.
Under the approved tariff structure, consumers using 1 to 100 units were set to pay Rs 23.59 per unit, while those using 101 to 200 units would have paid Rs 30.07 per unit. Similarly, consumers using 201 to 300 units would have faced a tariff of Rs 34.26 per unit, and those consuming 301 to 400 units were slated to pay Rs 39.15 per unit. The highest tariff, Rs 41.36 per unit, was intended for consumers using 401 to 500 units. The decision to retract the tariff hike for lower consumption brackets reflects the government’s effort to mitigate the impact of rising electricity costs on households, ensuring more affordable electricity for lower-consumption users.
