The federal government has decided to impose a fixed monthly electricity charge on residential consumers, ranging from Rs. 200 to Rs. 675, affecting over 28.5 million households. This move is aimed at raising funds for a relief package that reduces electricity costs for industrial users by Rs. 4.04 per unit. The new tariffs were submitted to the National Electric Power Regulatory Authority (Nepra) on Friday and are expected to be implemented later this month.
Under the amended Schedule of Tariff, households will now pay a fixed charge depending on their monthly consumption, while low-income household consuming less than 100 units per month are largely excluded.
The government estimates this measure will generate around Rs. 106 billion in revenue and Rs. 19 billion in sales tax. Officials say it will help reduce the financial gap between industrial and residential users and keep subsidy targets aligned with commitments made to the International Monetary Fund (IMF).
Small consumers using under 100 units will pay Rs. 200 per month, while those consuming 101 to 200 units will pay Rs. 300. Higher-consumption households will face charges ranging up to Rs. 675, depending on their usage. The government stressed that these fixed charges reflect the rising costs of maintaining the power system amid growing off-grid solar adoption and changing consumer patterns.
Officials added that the current system placed a disproportionate burden on some households while industrial consumers received implicit cross-subsidies.