Govt mulls big relief for electricity consumers

ISLAMABAD: The federal government has decided to withdraw the recent hike in electricity tariff for domestic consumers who use 200 units per month, ARY News reported citing sources.

Prime Minister Shehbaz Sharif called the cabinet meeting in which the hike for those who consume 200 units per month is likely to be withdrawn, the sources said.

They added that the federal government will be providing a subsidy of approximately Rs 50 billion to reduce the burden of high electricity bills.

The sources privy to the development said that the government proposed to provide relief to monthly consumers of 200 units or less from July to September 2024.

Earlier on July 4, the federal cabinet approved significant increase in the electricity tariff for residential consumers using 100 to 500 units per month.

According to the details, the new basic tariff was proposed at Rs 48.84 per unit, which would have increased to Rs 57.63 per unit after sales tax. With adjustments and other taxes, the maximum electricity tariff would have exceeded to Rs 65 per unit.

As per the decision taken by the federal cabinet, the monthly tariff for consumers using 1 to 100 units was proposed to Rs 23.59, while those using 101 to 200 units would had to pay Rs 30.07 per unit.

Similarly, the tariff for those consumers using 201 to 300 units will increase to Rs 34.26, and those using 301 to 400 units will have to pay Rs 39.15 per unit.

The consumers using 401 to 500 units will be charged the most as they will have to pay Rs 41.36 per unit.