How the new electricity rates will affect your monthly bills?

April 04, 2025 (MLN): In a move to provide relief to low-income households, the government has set new electricity tariffs for domestic consumers, with lifeline consumers paying just Rs4.78 per unit and those using up to 200 units facing reduced rates.

The announcement comes as part of ongoing efforts to address rising energy costs and provide relief to low-income households.

Impact on Consumers

For domestic consumers, the new tariff structure shows varying rates based on consumption:

• Lifeline consumers (those consuming very little) will pay Rs4.78 per unit.

• Domestic consumers using up to 100 units will pay Rs9.37 per unit, offering some respite for households with low electricity needs.

• Protected consumers using up to 100 units will be charged Rs8.52 per unit.

• Consumers using up to 200 units will see a rate of Rs11.51 per unit.

However, the relief is not universal, as those consuming more electricity will face considerably higher rates:

• Non-protected consumers using 300 units will pay Rs34.03 per unit.

• Non-protected Time of Use (TOU) consumers will face an even higher rate of Rs48.46 per unit.

These increases in the higher consumption categories will likely raise concerns for families and businesses with larger energy demands, as the price burden may be difficult to absorb.

Commercial and Industrial Sectors

The government’s new pricing scheme also impacts businesses and industrial sectors:

• Commercial consumers will be charged Rs62.47 per unit.

• General services will face a rate of Rs49.48 per unit.

• Industrial consumers will pay Rs40.51 per unit, while agricultural consumers will see a rate of Rs34.58 per unit.

These increases could strain the financial viability of certain businesses, especially smaller ones that already grapple with high operating costs.

Overall National Tariff

In Azad Jammu and Kashmir (AJK), the electricity tariff is set at Rs32.69 per unit, aligning with the national structure for public lighting.

The average national tariff has been fixed at Rs37.64 per unit, reflecting a clearer pricing system across various consumer categories.

Prime Minister Shehbaz Sharif, in a special address, outlined these changes and highlighted the government's ongoing efforts to reform the power sector and provide relief to consumers.

He also pointed to the government's efforts to tackle power theft, which costs the country an estimated Rs600 billion annually, and emphasized that measures were in place to reduce this burden.

During the event, the Prime Minister discussed structural reforms in the power sector and the government's negotiations with Independent Power Producers (IPPs), which saved the national exchequer Rs3,696 billion.

He also addressed the issue of circular debt, amounting to Rs2.39 trillion, and assured that steps would be taken to eliminate this problem within five years.

Prime Minister Shehbaz expressed gratitude to the leadership of the Pakistan Muslim League-Nawaz (PML-N) and its allies for their support in navigating these economic challenges.

He also acknowledged the role of the military leadership in stabilizing the country's economy and moving it toward sustainable growth.

The Prime Minister further emphasized the government's commitment to reducing inflation, which had peaked at 38%, and to restoring macroeconomic stability.

He revealed that inflation had now decreased to around 1.5% ahead of schedule and highlighted the government's success in reducing petroleum prices and the policy rate to ease the burden on the business community.

As the government continues its reforms, it faces the challenge of addressing the losses from state-owned enterprises (SOEs), which are responsible for massive fiscal deficits.

Despite these challenges, the government is optimistic that its efforts will lead to long-term economic stability and growth.

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