WEB DESK:
The federal government has proposed a new electricity tariff structure that places additional financial burden on residential consumers while easing pressure on industrial users through a significant per-unit rate cut.
Under the revised Schedule of Tariff (SoT) submitted to the National Electric Power Regulatory Authority (Nepra), monthly fixed charges ranging from Rs200 to Rs675 are proposed for more than 28.5 million household consumers. The move is expected to generate approximately Rs125 billion, which will be used to finance a Rs4.04 per unit relief package for industrial consumers.
According to the Power Division, the federal cabinet approved the proposal on February 4. Lifeline consumers using less than 100 units per month will be exempt. The new tariff structure is projected to generate Rs106 billion through tariffs and an additional Rs19 billion in sales tax, while keeping subsidies within IMF-agreed limits.
The plan introduces fixed charges based on consumption slabs, with the highest charge of Rs675 applying to households using more than 500 units per month. Officials said the changes aim to address high fixed grid costs and reduce distortions caused by volumetric tariffs.
Meanwhile, Nepra has approved a Rs1.21 per unit fuel cost increase for February bills, sparking criticism from business groups. The government says tariff rebasing will now shift to a calendar-year system to avoid sharp summer price hikes.
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