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Domestic consumers to pay the price as govt cuts power tariff for industry

6 months ago
in Business
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Government plans Rs200–Rs675 monthly electricity fixed charges on most households, raising Rs125bn to fund industrial relief, despite criticism, IMF-linked constraints, and higher fuel adjustments nationwide.

(Web Desk) – The federal government has proposed new fixed monthly electricity charges for more than 28.5 million residential consumers, aiming to collect about Rs125 billion to finance a Rs4.04 per unit relief package for industrial users. The revised Schedule of Tariff has been submitted to Nepra for swift approval, with officials terming the public hearing a procedural step.

Under the plan, nearly all domestic consumers—except lifeline users consuming under 100 units—will face fixed charges ranging from Rs200 to Rs675, depending on consumption slabs. The government says the move will reduce cross-subsidies, address rising fixed system costs, and offset revenue losses caused by growing off-grid solar use, while staying within IMF-agreed subsidy limits.

The decision coincides with a net fuel cost increase of about Rs1.21 per unit in February bills. Business groups, particularly exporters, have criticised the move, although the government has announced matching tariff relief for the export sector.

 

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