Good News for Electricity Consumers Crossing 200 Units

Federal Energy Minister Owais Leghari has announced plans to abolish the existing formula that causes electricity bills to rise sharply when monthly consumption crosses 200 units. The government is working on a new policy to provide relief to consumers.

Speaking in the Senate on October 27, Leghari said the government planned to remove the additional charge formula for six months when consumption reaches 201 units. He said the current system provides less relief to low-income households while benefiting wealthier consumers more.

The minister added that the government was working on a new mechanism to provide electricity relief based on poverty levels rather than consumption alone.

Govt Reviews Electricity Tariff Structure

During the Senate session, Senator Abid Sher Ali raised concerns about rising electricity bills. He said bills could increase sharply when consumption exceeds 200 units, placing further pressure on households already struggling with electricity costs. He also questioned whether ordinary consumers were bearing the burden of distribution companies’ electricity losses and theft.

Leghari said the government needed to review electricity tariff slabs to address these concerns. He added that the number of consumers using up to 200 units had reached 20 million, many of whom also use solar energy.

Circular Debt Falls to Rs1,670 Billion

The energy minister said the power sector’s circular debt had fallen to Rs1,670 billion. The government aims to eliminate the debt over the next four years and eventually remove the debt servicing surcharge linked to it.

He also said the Energy Ministry’s budget support had declined from Rs1,180 billion when the current government took office to Rs700 billion this year.

Leghari added that distribution companies’ losses had decreased annually, but consumers had yet to receive the full benefit of those improvements.

The government is preparing a revised relief mechanism, but the final policy and its implementation date have not yet been announced.