Tariff Hike Details
Starting in July, commercial consumers will see an Rs8.04 increase in the basic price of electricity, raising the per-unit rate to Rs77.15. Agricultural consumers will face an Rs6.62 increase per unit, setting their new rate at Rs46.83. For general services, the tariff will rise by Rs6.98 per unit, resulting in a new rate of Rs61.03. Non-protected consumers will experience an Rs5.51 per unit increase, making their new tariff Rs59.96. Despite these hikes, the basic tariff for industrial consumers remains unchanged, reflecting the government’s support for industrial activity during challenging economic times.
The government raised electricity tariffs to improve the power sector’s financial health. These increases aim to reduce the fiscal deficit and meet International Monetary Fund (IMF) conditions. Stabilizing the economy and attracting foreign investment require these tough decisions, despite their impact on various sectors.
Relief Package for Domestic Consumers
In response, Prime Minister Shehbaz Sharif announced a Rs50 billion relief package for domestic electricity consumers using up to 200 units per month. At a ceremony on energy sector reforms in Islamabad, PM Shehbaz emphasized that protected customers consuming up to 200 units will not face rate increases for July, August, and September. This subsidy aims to provide relief to approximately 25 million domestic consumers, or 94% of the total domestic consumer base.
Subsidy Details
The relief package ensures that electricity costs for protected consumers will range from Rs4 to Rs7 per unit during the three-month period. This measure is intended to mitigate the tariff hikes’ impact on the most vulnerable segments of the population. Additionally, K-Electric consumers in Karachi will also benefit from this subsidy, highlighting the government’s commitment to providing widespread relief.
While the increase in electricity tariffs for commercial, agricultural, and general service consumers will help address the power sector’s financial woes, the relief package for domestic consumers underscores the government’s effort to balance fiscal responsibility with social welfare. This approach aims to ensure that the economic burden is shared more equitably, while also supporting those most in need during these challenging times.
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