The government has withdrawn its decision to increase charges for power consumption slabs up to 200 units. The reversal follows an emergency approval from Prime Minister Shehbaz Sharif, who sought and obtained federal cabinet consensus on a circulation summary.
Earlier, on July 4, it was reported that the federal cabinet had approved a major condition of the International Monetary Fund (IMF) to raise the electricity tariff. This increase was to be implemented via a circulation summary, as confirmed by sources.
The National Electric Power Regulatory Authority (Nepra) had proposed an average increase of Rs5.72 per unit in the basic electricity tariff, which the federal cabinet had approved. The decision was then to be forwarded to Nepra for uniform tariff setting, with a federal government notification expected by July 10, in compliance with IMF conditions.
However, in a significant development, the government decided to hold off on this tariff increase for a specified period. Sources indicate that this relief will apply from July to September 2024, benefiting consumers who use up to 200 units per month.
To facilitate this relief, the federal government plans to provide a subsidy of approximately Rs50 billion. For lifeline customers consuming up to 50 units per month, the tariff will remain at Rs3.95 per unit, while those using between 51 to 100 units will continue to be charged Rs7.74 per unit during the relief period.
This decision aims to alleviate the financial burden on low-consumption consumers during the remaining summer months, providing much-needed respite amid economic challenges.
Leave a Reply