Govt offers power tariff relief with a caveat

PM unveils winter electricity package Users to save Rs26.7 per unit on higher usage Relief measures valid for th

ISLAMABAD:

Prime Minister Shehbaz Sharif has unveiled an electricity package promising a "relief" of up to Rs26.7 per unit for domestic, Rs15.5 per unit for industrial and Rs22.71 per unit for commercial consumers, provided that they spend a comparatively greater amount of electricity in winters when the demand for power drops considerably.

Addressing an event to commemorate the birth anniversary of Allama Muhammad Iqbal in the federal capital on Friday, the PM told the audience that the relief package will remain in force for three months from December 2024 to February 2025.

"Under the package, the domestic consumers will get a relief of up to Rs26.7 per unit for their power consumption surpassing 200 units of the protected category. It will help them save Rs11.42 to Rs26 per unit in the three months of winter," he said.

"Similarly, the industrial sector will save 18-37% or Rs5.27 to Rs15.5 per unit under the package to help boost industrial production, growth and livelihoods. The commercial consumers will be given a 34-47% saving or Rs13.46 to Rs22.71 per unit subsidy in the package," he said.

The government is required to make capacity payments to independent power producers (IPPs) regardless of whether these plants generate electricity. Electricity consumption also decreases in winter, and the adoption of solar energy has further contributed to an overall decline in electricity demand.

Through this relief package, which encourages increased electricity usage over the three winter months, the government aims to boost electricity consumption to reduce capacity payments.

The government has to make capacity payments to independent power producers (IPPs) whether these plants generate electricity or not. On the other hand, the consumption of electricity also declines during winters while there is also a general decline in the use of power due to a rising use of solar energy.

The government through this relief package that seeks greater use of electricity in three months of winter aims at boosting electricity production in a bid to make lesser capacity payments.

According to the Power Division, the relief will be provided if the electricity consumption of a user from December to February exceeds his consumption during the same months last year.

Shehbaz said the package would stimulate a quantum jump in the country's economic progress by boosting agriculture, industrial productivity, business activity and exports.

"The commitments and vision of the current government are being translated into actions through the relief package that will become the harbinger of improved economic resilience," he said.

Shehbaz thanked the International Monetary Fund (IMF) for permitting the government to announce the package and also commended his cabinet members and relevant senior officers for their efforts and teamwork in working out the relief package.

The PM also highlighted the current government's efforts in reviving the national economy, claiming that it was determined to provide the best education facilities to youth in fields of AI, IT, vocational training, and emerging technologies.

He said the economic situation is improving as the inflation rate is down to 6.7% from 32% and the policy rate is down to 15%. He expressed hope that the indicators will boost investment, exports, development in agriculture, livelihoods and businesses. Shehbaz motivated the youth and children to remain resolute in their ambition to achieve a glorious future for the nation.

Highlighting the government's achievements on the economic front, Prime Minister Shehbaz said foreign remittances in the first quarter of the current fiscal year were record high as the overseas Pakistanis sent $8 billion in remittances to the country.

"The Pakistani diasporas are the real ambassadors of the country offshore protecting the national interests and prestige," he added.

He also paid tribute to Dr Allama Muhammad Iqbal for his revolutionary philosophy that motivated Muslims and non-Muslims all across the world.

He also recited different verses of Iqbal's poems that advocated for reawakening the passion of leadership, integrity, commitment, determination, courage, hard work, empathy, self-confidence and compassion to emerge as a leading nation in the world.

WITH INPUT FROM APP