Govt Makes a Controversial Decision on Power Tariff

In yet another controversial move, the federal government has decided to revise the power tariffs to reduce the volume of subsidies given to the power sector.

According to a report by Express Urdu, the government has not set the timeline for the decision, and has asked the Minister of Finance to decide the implementation. However, the newspaper quoted an inside source suggesting that the new tariff is likely to be effective from 1 June 2021.


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Currently, 22 million consumers are receiving the subsidy. The new decision will oust eight million power consumers from the subsidy net, and will reduce their number to 13.9 million.

The federal government will request the National Electric Power Regulatory Authority (NEPRA) to change the existing tariff base.

“NEPRA will be requested to expand the definition of lifeline consumers to include the residential Non-Time of Use (ToU) consumers having a maximum of last 12 months and current month’s consumption of 100 units. Two tariff rates for 50 and 100 units will continue,” the newspaper quoting its sources as saying.


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A new category of protected customers will be added to include those consuming 200 kWh within a billing month and those that had consistently consumed 200 kWh over the last six months.

Four new slabs will be formed for 301-700 units’ consumers; 301-400, 401-500, 501-600, and 601-700 with the same marginal tariff. Each of these slabs will continue to get the previous slab benefit of 300 kWh.