For years, Pakistan’s electricity tariff structure shielded protected consumers from fixed monthly charges, placing a heavier burden on higher-usage households. That long-standing arrangement may now be heading for a major shift. Lawmakers are considering extending fixed electricity charges to protected consumers for the first time, signaling a fundamental change in how power costs are shared across income and usage groups.
The proposal was presented during a NEPRA hearing on the Power Division’s request to revise electricity tariffs. The session was chaired by NEPRA Chairman Waseem Mukhtar, where officials outlined a broad restructuring plan following the introduction of new solar net metering regulations. The plan aims to rebalance the system by adjusting fixed charges, energy rates, and subsidies across consumer categories.
According to officials, fixed charges have so far applied only to non-protected consumers using more than 300 units per month. Under the new proposal, protected households consuming up to 100 units would face a fixed charge of Rs. 200, while those using up to 200 units would pay Rs. 300. This marks a significant policy departure, as protected consumers were previously exempt from such charges.
Non-protected consumers would also see a revised slab-based structure, with fixed charges gradually increasing alongside monthly consumption. Charges would range from Rs. 275 for up to 100 units and rise to Rs. 675 for consumers using more than 600 units. Officials argue that this structure better reflects the cost of maintaining the power system and reduces reliance on cross-subsidies.
Government representatives told NEPRA that the primary objective is to reduce long-standing cross-subsidies that place pressure on the power sector’s finances. They claim the changes could lower energy rates for some consumers while ensuring more predictable revenue for distribution companies. However, concerns were raised about the affordability impact on low-income households already struggling with inflation.
NEPRA has not yet approved the proposal and is expected to conduct further reviews before issuing a final determination. Until then, millions of electricity consumers remain uncertain about how their monthly bills may change if the revised tariff structure is implemented nationwide.
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