Govt is Ending Subsidies for Electricity Consumers

A petition by the Ministry of Energy (Power Division) has been filed with the power regulator, National Electric Power Regulatory Authority (NEPRA), requesting a reduction in power subsidies for all consumers base and increasing base tariff up to Rs. 0.95 per unit.

As per the petition filed with the regulator, the Ministry of Energy has requested, “Gradual reduction in total net subsidy for unprotected consumers, reduction in cross-subsidy, and removal of previous slab benefit, for residential consumers.”

Accordingly, the ministry has requested, “Removal of one slab benefit (incremental block tariff), and incorporation of revised subsidy, and inter-distribution companies tariff rationalization/cross subsidies through modifications in the distribution companies (DISCOS) and K-Electric Schedule of Tariff (SoT).”

The authority has scheduled the ministry of energy’s request for retargeting power sector subsidies Phase II, hearing on 24 January.

According to the document submitted with NEPRA, it is proposed to increase Rs. 0.08 per unit for 100 units of usage, Rs. 0.18 per unit for the usage of 101 to 200 units, and Rs. 0.48 ​per unit for the use of 201 to 300 units, and Rs. 0.95 per unit for 301 to 700 units.

It is to be noted that a total subsidy of Rs. 20 billion will be abolished through this proposal.

With this move, the base tariff of electricity across Pakistan would be increased by 95 paisas and this would be the fourth time when the incumbent government will raise the base tariff for power consumers.

Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...