PTBP Web Desk
The Economic Coordination Committee (ECC) of the Cabinet has given its nod to a three-month winter electricity relief package.
This initiative, announced earlier by Prime Minister Shehbaz Sharif, aims to encourage electricity usage during the typically low-demand season by introducing a more favorable tariff structure.the proposal, which was tabled by the Ministry of Energy (Power Division), was discussed under the stewardship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The initiative is set to benefit a broad spectrum of consumers including industrial, domestic (Time of Use – ToU, and non-ToU exceeding 200 units), commercial, and general services customers of both distribution companies (DISCOs) and K-Electric.
Tariff Rate: Rs26.07 per kWh for the incremental consumption above the benchmark.
The benchmark for consumption is calculated as the higher of either the relevant month’s usage in FY2024 or the average consumption over the past three years for the corresponding months. This initiative will be effective for billing from December 2024 through February 2025.
The ECC lauded the move as a timely and relevant response to the recent spike in electricity tariffs and the consequent dip in demand across consumer categories. Prime Minister Shehbaz Sharif, while detailing the package, emphasized that this relief would significantly cut costs:
Domestic Savings: Domestic consumers will benefit from a flat rate of Rs26.7 per unit, translating into savings ranging from Rs11.42 to Rs26 per unit.
Industrial Savings: Industrial users could save between Rs5.72 to Rs15.05 per unit, which equates to a reduction of 18% to 37%.
Commercial Savings: Commercial entities stand to gain savings from Rs13.46 to Rs22.71 per unit.
This tariff adjustment is designed not only to lower the electricity bills for consumers but also to optimize the use of the national grid’s generation capacity, thereby reducing the overall demand for gas by shifting preference to electricity.
Beyond the electricity relief, the ECC also addressed a financial transfer proposal from the National Disaster Management Authority (NDMA). The committee approved the transfer of Rs3.14 billion from the balances of the erstwhile Emergency Relief Cell (ERC) to the NDMA Fund. This transfer aims to bolster NDMA’s capacity for conducting both inland and overseas rescue and relief operations, in alignment with its statutory mandate. The stipulation was clear that these funds, originally from public donations, must be utilized exclusively for relief, rescue, and rehabilitation efforts for victims of natural disasters like floods and earthquakes.
