Govt announces power relief package for winter

Published November 8, 2024
Power consumption is a significant economic indicator and the expected decline underscores challenges facing the newly elected government in debt-laden Pakistan, amid growing discontent among the poor.—Reuters
Power consumption is a significant economic indicator and the expected decline underscores challenges facing the newly elected government in debt-laden Pakistan, amid growing discontent among the poor.—Reuters

The Power Division on Friday announced a power relief scheme — called the “Bijli Sahulat” package — offering reduced electricity rates to consumers to encourage electricity use during the low-demand winter season.

On Thursday, the division also announced on X that the Nati­­onal Electric Power Regu­latory Authority (Nepra) notified an Rs1.28 per unit decrease in electricity charges due to the adjustment of fuel prices in September.

Meanwhile, in September, Nepra allowed an Rs1.743 per unit increase in electricity rates across the country for three months — Sept to Nov — to provide Rs43.23 billion funds to ex-Wap­da distribution companies.

According to a statement issued by the Power Division on Friday, the reduced rates will be offered to domestic, commercial and industrial consumers from December 2024 until February 2025, “in an effort to manage seasonal electricity demand and drive economic growth”.

A flat rate of Rs26.07 per unit “will be offered for any additional electricity demand above the benchmark historical average”, the statement read. “This will allow industries, commercial, general services and households to save significantly compared to the prevailing tariffs.”

Furthermore, the new rates will only apply to 25pc units over the reference benchmark, with all incremental sales over 25pc charged at existing rates notified by the government.

The statement added that industries consuming additional electricity beyond the historical benchmark can avail an 18-37 per cent discount on prevailing power rates.

“The government is committed to fostering increased industrial and commercial activity as a driver of economic growth,” the statement added.

“Households will also benefit from the discounted rate for additional winter electricity consumption, making it an attractive option for heating and other energy needs that would otherwise rely on gas.”

The Power Division, per the statement, will continue introducing new schemes to maximise electricity usage and support Pakistan’s economic growth.

Power Minister Awais Khan Leghari took to X to announce the package, which he termed the “Government of Pakistan’s important initiative”.

He wrote, “A special discount on the use of excess electricity will not only reduce electricity costs but also boost the economy.”

Industries will run smoothly: PM

While addressing an Iqbal Day ceremony at the PM House in Islamabad today, Prime Minister Shehbaz Sharif announced the electricity rates package, stating that it aimed to foster industrial and commercial activity in the country.

“For December, January and February, the government has decided to reduce electricity rates for those who use additional units,” the PM said in his speech. “From December 2024 to February 2025, these discounts will be reflected in the bills.

“There will be savings of between Rs11.42 per unit and Rs26 per unit during these three months,” he said, adding that there are different slabs for consumers who use additional power.

PM Shehbaz said that for industries, “There will be savings of Rs5.72-Rs15 per unit”.

The premier went on to say that the reduced industrial rates will encourage economic opportunity and help industry run smoothly.

“Industries can expect savings of between 18-37pc based on current rates.”

He also said that commercial consumers will experience savings of between Rs13.40 per unit and Rs22 per unit. “There will be savings of Rs34-Rs47 on incremental use,” he said.

“This will ensure that industries and business will run smoothly and our economy will be strong.”

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