The federal government has proposed imposing a monthly fixed charge ranging from Rs. 200 to Rs. 675 on more than 28.5 million residential electricity consumers to raise around Rs. 125 billion and fund a relief package of Rs. 4.04 per unit for industrial users.
The revised Schedule of Tariff (SoT) was submitted to the National Electric Power Regulatory Authority (Nepra) on Friday evening and was immediately put on notice for a public hearing on the first available working day after the weekend for implementation within the current month.
The power division informed Nepra that the imposition of a fixed charge on almost all residential consumers, except lifeline users consuming less than 100 units per month, was approved by the federal cabinet on Feb 4.
The move comes less than three weeks after the government notified the national average base tariff on Jan 12 for implementation from Jan 1, denying consumers the benefit of around 62 paisa per unit reduction determined by the regulator.
According to the power division, the new fixed charge would generate about Rs. 106 billion in tariff revenue and around Rs. 19 billion in sales tax. This will help reduce cross-subsidy by industrial consumers by allowing a Rs. 4.04 per unit tariff cut without breaching subsidy targets committed to the International Monetary Fund (IMF).
Under the proposal, about 9.9 million consumers using less than 100 units per month will pay a fixed charge of Rs. 200, while over 6.1 million protected consumers using up to 200 units will pay Rs. 300.
These users must maintain consumption within the limits for six consecutive months to qualify for average unit prices of Rs. 10.54 and Rs. 13, respectively.
Non-protected consumers exceeding the 100-unit threshold even once within six months will be charged a fixed Rs. 275. Around 5.7 million consumers fall in this category, with per-unit rates rising above Rs. 22.44, excluding taxes.
The next slab of 200 units will attract a Rs. 300 fixed charge for about 2.24 million consumers.
Those using 201 to 300 units will pay Rs. 350, affecting around 2.9 million users, while nearly one million consumers using 301 to 400 units will pay Rs. 400 per month.
Around 400,000 consumers using 401 to 500 units will face a Rs. 500 charge, while users consuming above 501 units will pay the highest fixed charge of Rs. 675. About 0.41 million consumers fall in this bracket.
The power division said the fixed charge mainly reflects the growing fixed costs of the power system amid changing consumer behaviour and expanding off-grid solar usage.
“It has become necessary to rationalise the tariff structure due to a structural misalignment between revenue requirements, largely fixed in nature, and the current volumetric recovery mechanism,” the division said.
It added that the existing framework placed a disproportionate burden on some consumers, encouraging migration to alternative energy solutions and increasing cross-subsidisation.
The cabinet has approved recalibrating fixed and variable charges while staying within the determined revenue requirement and the approved subsidy limit of Rs. 249 billion to ensure long-term financial sustainability of the grid.
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This is Not the way, to shift Industrial Ele tricity supply burden to its Residential Consumers, to provide, relief to Industry, tke Electrical Comsumers are already paying higher rates. And what the Industrialist will give back to its Consumers, will the prices of daily commodity go down, any discounts will be offered or allowed, or they will enjoy this relief for themselves. The Govt., first think about providing relief to General Public, as Inflation, is now also increasing day by day. And Ramzan is approaching, the prices will go up, specially Fruits and other related Commodities, flour etc.