Pakistan: Federal government ends electricity subsidies for consumers
Oct 23, 2024
Islamabad [Pakistan], October 23 : The Pakistan federal government has made a significant move regarding electricity subsidies. The government has decided to withdraw the electricity subsidy for consumers using up to 200 units per month, according to a report by ARY News.
Starting in October, consumers using up to 200 units per month will face increased charges, ranging from Rs 9 to Rs 29 per unit, as the government subsidy comes to an end. Specifically, protected customers who consume up to 50 units will be charged Rs 9.39 per unit, while those using 51-100 units will pay Rs 13.64 per unit. Consumers utilising 101-200 units will see the steepest increase, with a rate of Rs 29.21 per unit.
Notably, the National Electric Power Regulatory Authority (NEPRA) has also introduced a new surcharge policy for late bill payments.
As per the reports, a 5 per cent surcharge will apply to bills paid within three days after the due date, while a 10 per cent surcharge will apply to payments made beyond that period, ARY News reported.
The government has provided some flexibility to the consumers and has decided that no surcharge will be applied if payments are made within the three-day grace period following the due date. This change replaces the previous uniform 10 per cent late payment charge on overdue bills.
Pakistan's citizens have faced a continuous rise in electricity prices. In August, the electricity prices in the country rose for the 14th time, increasing the burden on Pakistani citizens, ARY News had reported.
According to the details, 14 adjustments were made from July 2023 to August 2024, resulting in an additional cost of over Rs 455 billion to consumers.
These adjustments had led to a significant increase in power prices, with the highest increase of Rs 7.06 per unit in March 2024. The constant changes in electricity prices have made it challenging for the citizens to manage their expenses, as reported by ARY News.
People urged the Pakistan government to review the fuel adjustment mechanism to provide relief to the public.
