Government’s RS 7.41‑per-Unit Electricity Relief to Expire After Three Months

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Hassan Khan

Government’s RS 7.41‑per-Unit Electricity Relief to Expire After Three Months

The federal government’s three-month electricity bill relief initiative, announced in April to provide temporary financial relief to consumers, is now nearing its end. Starting this month, consumers will receive only a minimal benefit, with the remaining Rs1.55 per unit concession set to be fully withdrawn next month—marking the conclusion of Prime Minister Shehbaz Sharif’s relief package.

Initially, the package offered a reduction of Rs7.41 per unit across various billing components including quarterly tariff adjustments, fuel charges, and petroleum levy. However, official sources confirm that only a fraction of that relief remains in effect for July.

Contrary to reports of the relief’s withdrawal, the Power Division clarified that the Rs7.41 per unit reduction had not been officially rescinded. It further noted that consumers could expect additional relief from a planned reduction of up to Rs1.50 per unit in the base electricity tariff. The division emphasized that savings secured through negotiations with Independent Power Producers (IPPs) continue to benefit consumers.

In 2024, the average electricity tariff in the tax-paying sector stood at Rs48.28 per unit. This figure is projected to decline to Rs40.34 per unit in July, reflecting an overall decrease of Rs7.92 per unit. Additionally, the elimination of the Rs35 PTV license fee from electricity bills and the abolition of provincial electricity duty—offering a further reduction of 90 paisas per unit—are expected to ease financial pressure on households.

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As part of the April relief measures:

  • Rs1.90 per unit was reduced via quarterly tariff adjustments.
  • Rs1.71 per unit relief was provided through petroleum levy reductions.
  • Rs0.90 per unit was deducted under fuel cost adjustments.

Prime Minister Shehbaz Sharif had initially announced that domestic electricity prices would drop from Rs48.70 to Rs34 per unit, while industrial rates would fall from Rs58.50 to Rs48, including a reduction of Rs7.59 per unit for the industrial sector.

Despite these measures, lifeline consumers using up to 50 units remained unaffected, with their average bills holding steady at Rs239. For other domestic users:

  • 51 to 100 units: Bill remained at Rs937.
  • 1 to 100 units (non-protected): Bill dropped from Rs1,467 to Rs852.
  • Up to 200 units: Reduced from Rs3,530 to Rs2,302.
  • 300 units: Decreased from Rs12,378 to Rs10,209.
  • More than 400 units: Brought down from Rs22,280 to Rs19,384.

With the final phase of the relief package winding down, consumers are likely to see a return to higher electricity costs in the coming billing cycles unless new support measures are introduced.

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