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Pakistan Ends Electricity Subsidy for Low-Usage Consumers

ANM Bureau

Starting in October, electricity prices will rise for consumers using up to 200 units.

In a significant development, the Pakistan federal government has announced the withdrawal of electricity subsidies for consumers using up to 200 units per month.

Beginning in October, affected consumers will face increased rates, with charges ranging from Rs 9 to Rs 29 per unit.

Protected customers consuming up to 50 units will be charged Rs 9.39 per unit, while those using between 51-100 units will see their rate rise to Rs 13.64 per unit.

The steepest increase is for users consuming 101-200 units, who will now pay Rs 29.21 per unit.

New Surcharge for Late Payments

In addition to the subsidy withdrawal, the National Electric Power Regulatory Authority (NEPRA) has introduced a new surcharge policy.

Consumers who miss the payment due date will face penalties, with a 5% surcharge for bills paid within three days and a 10% surcharge beyond that.

However, no penalty will be charged if payments are made within the three-day grace period.

Electricity Costs Soar Over Last Year

The subsidy cut is part of a broader trend of rising electricity costs in Pakistan. Between July 2023 and August 2024, 14 adjustments have been made to electricity tariffs, resulting in an additional Rs 455 billion in costs for consumers.

The highest increase, Rs 7.06 per unit, was recorded in March 2024. Amid these increases, citizens are urging the government to review the fuel adjustment mechanism, which allows electricity prices to fluctuate based on fuel costs.

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