Govt proposes fixed electricity charges for households to give relief to industry

The federal government has decided to levy monthly fixed electricity charges ranging from Rs 200 to Rs 675 on more than 28.5 million residential consumers as part to raise around Rs 125 billion to subsidize a Rs 4.04-per-unit tariff relief for industrial users. 

The revised schedule of tariff was sent Nepra on Friday evening and put on notice for a public hearing at the earliest date.

Under the proposal, households consuming less than 100 units a month would pay a Rs 200 fixed charge, while those using up to 200 units would be charged Rs 300, provided they keep consumption within these slabs for six months to maintain lower average unit rates. However, larger users face higher monthly fixed charges, Rs 275 for those above 100-unit threshold, Rs 350 for 201–300 units, Rs 400 for 301–400 units, Rs 500 for 401–500 units and Rs 675 for those exceeding 500 units per month.

The proposed measures follow recent regulatory moves that will see a positive fuel cost adjustment of about Rs 1.21 per unit added to February bills.

Meanwhile, industry representatives have criticized the proposal, saying it will burden households, even as the government seeks to support export competitiveness and meet subsidy targets agreed with IMF.

According to officials, the tariff rebasing cycle start from Jan 1 instead of July 1 to lower increases during high-consumption months.