Govt Announces Up to Rs26 Per Unit Relief on Extra Power Consumption”

Initiative aims to encourage higher consumption”: Power Division

Islamabad(Staff Reporter)-Prime Minister Shehbaz Sharif has unveiled a three-month electricity relief package for consumers during the winter season. Addressing an event honoring Allama Iqbal’s birth anniversary, he announced the package will provide relief on additional power consumption from December 2024 to February 2025. The package includes a significant reduction in electricity prices, offering consumers a much-needed respite amid high costs.

A flat rate of Rs26.07 per unit would be offered for any additional electricity to the household consumers, the premier said and added: “The household consumers will save from Rs11.42 per unit to Rs26 per unit.”

PM Shehbaz added that there are different slabs for electricity consumers.

Moreover, the industrial sector would save up to Rs5.72 per unit to Rs15 per unit. “Hopefully, the industrial will accelerate and people will get livelihood opportunities.”

According to the premier, the industrial sector would be able to save up to 18% to 37% in electricity tariffs.

In addition to this, commercial consumers would save from Rs13.46 per unit to Rs22 per unit in tariffs. “They would save 34% to 47% on incremental electricity usage,” he said and added that the reduction in the cost of electricity would boost industries, agriculture, and business, and help boost exports.

The Power Division said that this initiative encourages industries to increase production capacity while benefiting from lower average electricity costs, making their operations more cost-effective.

Domestic consumers will also benefit from the discounted rate for additional winter electricity consumption, “making it an attractive option for heating and other energy needs that would otherwise rely on gas”.

This initiative reflects the government’s commitment to innovative approaches that not only balance electricity demand across seasons but also provide economic advantages to consumers.

Furthermore, all the incremental sales over and above 25% of the benchmark consumption would be charged normal tariffs as notified by the government, it added.

Lauding the “Bijli Sahulat Package”, Prime Minister Shehbaz Sharif said that the initiative would help domestic power consumers save significantly on excess consumption.

He stated this while addressing a ceremony held in connection with the birth anniversary of Dr Allama Muhammad Iqbal Day —Poet of the East — in the federal capital.

Speaking on the occasion, the premier announced the three-month winter package, saying: “Industries’ wheel in the country will move swiftly due to the winter package.”

Under the new package, a flat rate of Rs26.07 per unit would be offered to domestic consumers on extra consumption of electricity during the three-month period, the premier added. He said that the move will help the domestic consumers “save significantly”. He also thanked Power Minister Awais Leghari for the initiative.

Highlighting his government’s achievements, PM Shehbaz said that they were taking the country forward in light of Iqbal’s message.

“The country’s economic situation improving gradually.”

Due to the government’s effective measures, inflation dropped to 6.7% as compared to 30% during the previous year. Interest rate has been slashed to 15%, the PM said, adding that that the rate was at 23% in 2022.

He further said that the government was introducing reforms in each sector to put the country on the upward trajectory.