Government’s Temporary Relief Program Comes to an End

Islamabad- A three-month government-provided relief on electricity tariffs for consumers using up to 200 units per month is set to expire on September 30, 2024. This relief shielded consumers from the impact of increased tariffs but will now result in a substantial hike in electricity bills starting October 1.

According to sources, the base tariff for consumers using up to 200 units per month will rise by Rs 7.12 per unit. This increase follows the government’s July 2024 decision to raise the electricity tariff by Rs 7.12 per unit, which was temporarily exempted for three months through a Rs 50 billion subsidy.

The new tariff structure reveals significant increases for both protected and non-protected consumers:

Non-Protected Consumers:

1-100 units: Tariff increase by Rs 7.11, new rate Rs 23.59/unit
101-200 units: Tariff increase by Rs 7.12, new rate Rs 30.07/unit

Protected Consumers:

1-100 units: Tariff increase by Rs 3.95, new rate Rs 11.69/unit

101-200 units: Tariff increase by Rs 4.10, new rate Rs 14.16/unit

Lifeline consumers using:

Up to 50 units/month: Tariff remains Rs 3.95/unit

51-100 units/month: Rate remains fixed at Rs 7.74/unit

Millions of consumers will be affected as the temporary relief is phased out amidst rising energy costs and economic challenges.

Experts warn that this tariff hike may lead to increased financial burdens on households and businesses, potentially exacerbating inflationary pressures.

The government’s decision to end the relief program has sparked concerns about the impact on low-income households, who will bear the brunt of the price increase.

As Pakistan struggles to address its energy crisis, consumers are bracing for the financial implications of the tariff hike.

 

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