Govt Announces Decision on Ending Electricity Subsidy for Citizens Using Less Than 200 Units

Federal Minister for Power Awais Ahmed Khan Leghari has rejected reports that the government plans to end electricity subsidies for protected consumers.

Speaking at a press conference in Islamabad on Sunday, Leghari said the government was not withdrawing subsidies for protected electricity users. He added that reports claiming otherwise were incorrect.

The minister said consumers using less than 200 units of electricity would continue to receive subsidies. He added that the number of such consumers has now crossed 20 million.

Leghari said eligible consumers would keep receiving subsidies without interruption through a new QR code-based system.

He also ruled out any increase in taxes on electricity bills. He said the government was not considering any such proposal.

QR Code System for Subsidy Verification

Leghari said the government was introducing reforms to compile consumer data through the QR code system.

He said the system would help ensure that electricity subsidies reach deserving consumers.

According to the minister, subsidy recipients are being asked to provide their details through the registration process.

He said the number of electricity subsidy beneficiaries had increased from 9.5 million to 21.5 million over the past four years.

At present, around 29.57 million domestic consumers, or 86 percent of total domestic users, are receiving subsidies.

Power Sector Reforms

The minister said reforms in the power sector were producing positive results.

He said renegotiated agreements with independent power producers had helped save Rs. 3.5 trillion.

He added that reductions in losses of distribution companies had saved another Rs. 193 billion.

Leghari also said circular debt fell by Rs. 780 billion during fiscal year 2024-25.

The minister defended the government’s claims about lower electricity prices. He said energy sector reforms were giving direct relief to consumers.

Net Metering Not Abolished

Leghari also rejected claims that the government was discouraging solar energy.

He said the government wanted to make the solar system more transparent instead of restricting its use.

The minister said net metering had not been abolished. He added that only billing procedures had been changed.

According to Leghari, more than two million single-phase consumers have already completed registration.

He said 90 percent of domestic consumers would not be affected by the revised net billing policy.

Solar Project Rules Simplified

The minister said the government had removed licensing requirements for solar projects of 25kW and below.

He added that regulatory approvals had also been simplified for smaller solar projects.

Leghari said the changes were aimed at improving transparency, supporting genuine consumers and ensuring that subsidies and energy reforms benefit the right users.