PM Shehbaz Sharif announces good news for electricity consumers

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday announced Rs50 billion relief package for domestic electricity consumers using up to 200 units per month, ARY News reported.

Addressing a ceremony on energy sector reforms in Islamabad, PM Shehbaz Sharif said that the government would not be increasing the electricity rates for protected customers who consume up to 200 units of power for a period of three months.

“The domestic consumers who consume up to 200 units of electricity will get a subsidy for three months — July, August, September,” Prime Minister Shehbaz Sharif announced.

25 million domestic consumers which make up to 94 percent of the total domestic consumers will benefit from this package for three months of July, August and September, he said.

The prime minister said that under the package, cost of per unit electricity will be 4 to 7 rupees per unit. He said consumers of K-Electric will also be eligible for this subsidy.

He went on to say that Rs50 billion will be spent from development fund.

He said the decision has been taken to provide relief to common man in the wake of increase in prices of electricity, adding that the coalition government will overcome all difficulties together.

“Only way to overcome our economic woes is to nab corruption,” he added.

The announcement comes after public outcry over a government’s decision to massively increase the power tariff.

Last month, 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.