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Government Rolls Back Recent Hike In Electricity Prices

Government Rolls Back Recent Hike In Electricity Prices

The federal government has decided to retract the recent increase in electricity prices for consumers using up to 200 units per month, providing significant relief to millions of households. Prime Minister Shehbaz Sharif’s directive drove this decision, aimed at easing financial strain on low and middle-income families nationwide.

The federal cabinet has approved a summary to withdraw the price hike through circulation. Prime Minister Sharif has urged emergency approval from the cabinet to swiftly implement this relief measure, effective from July to September 2024 for consumers using up to 200 units.

Read more: NEPRA Proposes A Rs5.72 Per Unit Increase In Electricity Rates

To offset the financial impact, the government will subsidize approximately Rs50 billion. This subsidy aims to ease the burden on the national treasury while ensuring immediate relief on electricity bills for consumers.

For lifeline customers, the government will maintain existing tariffs:

  • Consumers using up to 50 units per month will continue paying Rs3.95 per unit.
  • Consumers using between 51 and 100 units per month will pay Rs7.74 per unit.

These measures protect financially vulnerable households from increased energy costs.

With the prime minister’s approval, the rollback of the increase for consumers using up to 200 units will be effective today (Tuesday), reflecting the government’s commitment to easing economic pressures amid current challenges.

Pakistan is facing a significant electricity shortfall of 5,600 megawatts, leading to extensive load shedding across urban and rural areas, with some regions enduring up to 14 hours without power due to high line losses.