ISLAMABAD:
The government has projected the collection of an additional Rs132 billion annually from power consumers through fixed charges across various domestic categories. However, the net impact on cross-subsidy is estimated at Rs101 billion, as the government has reduced electricity tariffs by up to Rs1.53 per unit for CY2026.
On Tuesday, the National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on a petition filed by the Power Division. The hearing was chaired by NEPRA Chairman Waseem Mukhtar, while officials from the Power Planning and Monitoring Company (PPMC) briefed the regulator on the proposed structure. For industry, the plan proposes a reduction of Rs4.04 per unit in electricity tariffs.
Under the proposal, fixed charges would be extended to households consuming up to 300 units per month, including protected consumers. Previously, only non-protected users consuming more than 300 units were subject to fixed charges.
For protected consumers, the proposal suggests a fixed charge of Rs200 per month for those using up to 100 units and Rs300 for those consuming up to 200 units.
For non-protected consumers, the proposed fixed charges include Rs275 per month for consumption up to 100 units, Rs300 for up to 200 units and Rs350 for up to 300 units.
Higher consumption slabs would also see revisions. Fixed charges for non-protected consumers using 301-400 units are proposed to rise to Rs400 from the earlier Rs200, while those consuming 401-500 units would pay Rs500 compared to the previous Rs400. For users consuming 600 units, fixed charges would increase to Rs675 from Rs600 earlier.
However, for heavier consumers, some relief has been proposed. Fixed charges for users consuming up to 700 units would be reduced by Rs125 to Rs675, while those consuming more than 700 units would see a reduction of Rs325, also bringing their fixed charge down to Rs675.
The new fixed charges are expected to generate Rs101 billion annually, which would be redirected to support the industrial sector. Officials said the additional revenue would help lower electricity costs for industry, improving competitiveness and easing pressure on exports.
The proposal also includes reductions in per-unit tariffs for domestic consumers. Households using 400 units would receive relief of Rs1.53 per unit, while those consuming up to 500 units would see a cut of Rs1.25 per unit. For 600-unit consumers, the proposed reduction is Rs1.40 per unit. Users consuming 700 units would receive a reduction of 91 paisa per unit, while those using more than 700 units would get a cut of 49 paisa per unit.
