Govt Announces a Huge Relief on Use of Electricity Instead of Gas in Winters

The federal cabinet has approved an Rs. 7 per unit relief for electricity consumers that utilize surplus electricity between November and February.

Federal Minister for Information Technology, Fawad Chaudhry, announced this in a post-meeting media briefing on Tuesday.

“We have surplus electricity and shortage of gas in winter. Therefore, the Ministry of Power has approved a proposal that will allow up to Rs. 7/unit relief to the consumers who use more electricity instead of gas in winter,” Fawad Chaudhry said.

Later, Minister for Energy, Hammad Azhar, also tweeted the approval of the electricity package.

“Any additional electricity consumed by domestic and commercial consumers during November-February compared to the same time previous year will have a discount of Rs. 5 to 7 each unit,” tweeted Azhar.

The purpose of this incentive is to encourage maximum use of surplus power in the winter season, so that capacity payment to power producers may be reduced, which is one of the key factors of increased inflow of circular debt. The government has already announced an industrial support package recently.

Fawad also announced the formation of a cabinet committee comprising himself, Hammad Azhar, and Federal Minister for Communication, Murad Saeed. The committee will review the past government’s contracts of power and roads with reference to the high rates and expose those who benefited from these contracts. The committee would submit its report to the cabinet.