Government prepares major power pricing overhaul to ensure fair subsidy distribution for low-income households
ISLAMABAD: The federal government has initiated sweeping reforms to restructure electricity and gas pricing, shifting from consumption-based tariffs to an income-based subsidy model aimed at protecting low-income households.
The proposed framework, being finalized in line with commitments made to the International Monetary Fund, seeks to distribute subsidies more equitably by linking relief to household income rather than electricity usage alone.
Under the current and proposed structure, protected domestic consumers using 1–100 units per month will be charged Rs10.54 per unit, while those consuming 101–200 units will pay Rs13.01 per unit. For non-protected users, rates stand at Rs22.44 per unit for up to 100 units and Rs28.91 for 101–200 units.
The National Electric Power Regulatory Authority has recommended maintaining the Rs33.10 per unit tariff for consumers using 201–300 units monthly. Higher slabs include Rs37.99 for 301–400 units, Rs40.22 for 401–500 units, Rs41.62 for 501–600 units, Rs42.76 for 601–700 units, and Rs47.69 for consumption exceeding 700 units.
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