No relief for 200 units: Govt to abolish protected category of power consumers

ISLAMABAD: Government of Pakistan has decided to eliminate the category of protected electricity consumers by 2027, ARY News reported quoting Secretary of the Power Division.

During a Public Accounts Committee meeting chaired by Junaid Akbar Khan, Secretary of the Power Division Dr. Fakhre Alam Irfan, revealed that the number of protected consumers, defined as those using up to 200 units of electricity per month, has risen from 11 million to 18 million, accounting for 58% of the country’s total electricity consumers.

These consumers currently receive subsidies ranging from 60% to 70%, the highest among all consumer categories.

The Power Division is gradually reducing electricity subsidies, with a goal to completely phase them out by 2027. Dr. Irfan noted that within the next one and a half years, the issue of subsidies for consumers using up to 200 units will be resolved.

The government is also addressing the issue of surplus electricity in the country. Two proposals are under consideration: providing surplus electricity to industries at discounted rates or supplying affordable electricity to new industries.

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However, these proposals require approval from the International Monetary Fund (IMF), and negotiations are ongoing, with no approval granted yet. Dr. Irfan emphasized that all significant policy decisions are first approved by the IMF, followed by the federal cabinet.

Earlier, the Power Division has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, through the implementation of a uniform tariff system.

According to reports, NEPRA will hear the request, with adjustments set to take effect in the upcoming fiscal year.

As per the proposal, electricity prices for domestic users may drop by Rs 1.16 per unit, bringing the maximum tariff down from Rs 48.84 to Rs 47.69 per unit. This move is expected to ease the burden on middle-income households and low-usage consumers alike.

For protected users consuming up to 100 units, electricity prices could fall to Rs 10.54 per unit, while those using 101 to 200 units may see a revised rate of Rs 13.01 per unit.

Lifeline users consuming up to 50 units will continue paying Rs 3.95 per unit, with no increase proposed.