The government is planning to introduce more slabs for electricity consumers to enforce targeted subsidies in the upcoming budget, as confirmed by the Special Assistant to the Prime Minister (SAPM) on Power and Petroleum, Tabish Gauhar.
The new schematic will be implemented in two phases. Gauhar revealed that the electricity tariffs will not be raised under the first phase, while the second phase will involve a marginal increase.
The SAPM detailed that the government is planning to carve out slabs starting from 200-300 units, 301-400 units, 401-500 units, 501-600 units, 601-700 units, and so on to ensure the targeted subsidy. He remarked that the additional slabs will “help create new categories of electricity tariffs for consumers, and will help reduce the volume of subsidy too”.
While the SAPM explained that the current subsidy is putting a lot of pressure on the national exchequer and how the new slabs will help to reduce it, a report quoted official sources who warned that as many as eight million consumers will be out of the subsidy net after the implementation of the new targeted subsidy. In this regard, a report claimed that almost 22 million consumers are currently getting relief on the payments of electricity bills.
With the implementation of the new targeted subsidy, that number will fall to 13.9 million consumers, saving Rs. 42 million in subsidy expenditure. In this regard, the concerned distribution companies (DISCOs) will request the National Electric Power Regulatory Authority (NEPRA) to make changes in the new category of consumers in accordance with the targeted subsidy.
The federal government will also request the NEPRA to release a new category of protected customers, including those consuming 200 kWh per month and the ones who have consumed 200 kWh in the preceding six months. Additionally, the tariff rates for 50 and 100 units will continue as advised.
Via The News