Decision to Increase Tariff for Protected Electricity Consumers ‘Revoked’

ISLAMABAD: The federal government has rescinded its decision to increase the tariff for lifeline electricity consumers who use up to 200 units, sources informed Geo News.

Sources revealed that Prime Minister Shehbaz Sharif obtained approval from the federal cabinet on an emergency basis through a circulation summary to reverse the tariff hike.

On July 4, sources told The News that the federal cabinet had initially decided to raise electricity rates to meet a significant condition set by the International Monetary Fund (IMF). The cabinet had approved an increase in the basic electricity tariff, which had also been confirmed via a circulation summary.

The National Electric Power Regulatory Authority (Nepra) had recommended the federal government raise the basic electricity tariff by an average of Rs5.72 per unit. According to government sources, the federal cabinet’s decision was to be forwarded to Nepra for uniform tariff approval.

Following Nepra’s approval, the federal government was supposed to issue a notification by July 10 to increase the basic electricity tariff under IMF conditions. However, the government decided to defer this decision for a specific period.

Sources indicated that the relief period covers the remaining summer months of this year, from July to September 2024, for consumers using up to 200 units per month.

The federal government plans to provide a subsidy of approximately Rs50 billion to offer relief on the tariff. For lifeline consumers using up to 50 units per month, the tariff will remain at Rs3.95 per unit. For lifeline users consuming 51 to 100 units per month, the tariff will stay at Rs7.74 per unit during this period.

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