Govt to provide relief to power consumers using up to 200 units

The federal government is mulling providing subsidies to the masses falling at the protected consumers' slab by using up to 200 units per month.

The subsidy is likely to be provided after further cutting the budget of public sector development programmes (PSDP), which was already cut Rs250 billion.

The move aimed to create fiscal space to pass relief to the most affected people without compromising the deal with the International Monetary Fund (IMF).

On the order of PM Shehbaz Sharif, the summary was forwarded to the federal cabinet. However, it was unclear how much extra subsidy was decided to provide.

The subsidy will be provided to protected consumers, who use up to 200 units monthly, sources said.

“It can be announced anytime soon,” said an official while talking to a private publication on the condition of anonymity.

As many as 29 million domestic consumers or 52 percent would avail of the subsidy, of which 4% are lifeline consumers having single-phase electric connections with sanctioned loads up to one kilowatt.

The pricing formula will vary within this category depending on their consumption; those using up to 100 units will pay less amount per unit than 200 units users. 

Earlier, following IMF conditions to shrink the circular debt, the government approved hiking the power tariff by Rs7.12 for domestic consumers.

However, the Minister for Power Division, Awais Leghari, said it is impossible to provide free electricity to protected consumers.