The federal government has proposed imposing a monthly fixed electricity charge on more than 28.5 million residential consumers as part of a major tariff restructuring plan. The move aims to raise around Rs. 125 billion to fund a relief package of Rs. 4.04 per unit for industrial electricity users, while keeping subsidy commitments intact.
The revised Schedule of Tariff was submitted to the National Electric Power Regulatory Authority on Friday evening. Nepra has placed the proposal on notice for a public hearing on the first available working day after the weekend, with the government seeking implementation within the current month.
According to the power division, the imposition of fixed charges on almost all residential consumers was approved by the federal cabinet on February 4. Lifeline consumers using less than 100 units per month will be exempt from the new charge, while all other residential categories will be affected.
The proposal comes less than three weeks after the government notified the national average base tariff on January 12, effective from January 1. At that time, consumers were denied the benefit of a reduction of around 62 paisa per unit determined by the regulator.
The power division informed Nepra that the new fixed charge structure would generate approximately Rs. 106 billion in additional tariff revenue and about Rs. 19 billion in sales tax. Officials say this will help reduce cross-subsidy borne by industrial consumers, allowing a Rs. 4.04 per unit tariff cut without breaching subsidy limits agreed with the International Monetary Fund.
Under the plan, around 9.9 million consumers using up to 100 units per month will pay a fixed charge of Rs. 200. More than 6.1 million protected consumers using up to 200 units will face a Rs. 300 monthly charge, provided they maintain consumption within limits for six consecutive months.
Non-protected consumers exceeding the 100-unit threshold even once within six months will be charged a fixed Rs. 275. About 5.7 million consumers fall into this category, with per-unit rates rising above Rs. 22.44, excluding taxes.
Consumers using 201 to 300 units will pay a fixed Rs. 350, affecting nearly 2.9 million users. Those consuming 301 to 400 units will pay Rs. 400, while users of 401 to 500 units will face a Rs. 500 monthly charge. Consumers using more than 501 units will pay the highest fixed charge of Rs. 675.
The power division said the decision reflects rising fixed costs of the power system, changing consumption patterns, and increasing off-grid solar usage. It added that the cabinet-approved restructuring aims to ensure long-term financial sustainability of the national power grid.
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