Pakistan’s winter energy relief plan eases electricity expenses

March 28, 2025 (MLN): A three-month electricity relief package was introduced in November 2024 under the "Bijli Sahulat" winter incentive program, aimed at reducing electricity costs for domestic, commercial, and industrial consumers in Pakistan, according to the GoP Winter Package.

Prime Minister Shehbaz Sharif unveiled this initiative to provide relief during the low-demand winter season.

The package, effective from December 2024 to February 2025, set a flat rate of Rs26.07 per unit for consumption exceeding benchmark levels.

It was designed to stimulate industrial and economic activity, with industrial consumers benefiting from savings of up to 25%, while commercial and residential users received tiered discounts on higher usage.

In K-Electric’s service territory, the total incremental consumption crossed 100 million units, with a sectoral breakdown of 60% consumption by the industrial sector (62.9m units), 21% by the commercial sector (22.36m units), and 19% by the residential sector (19.62m units).

Large-scale industrial customers were the primary contributors to electricity consumption, particularly B2-ToD and B3-ToD consumers ranging from 25kW to 5000kW who leveraged the Time-of-Day pricing mechanism for enhanced efficiency.

Time-of-Day pricing played a crucial role in optimizing energy usage, with the industrial sector emerging as the largest beneficiary, consuming 62.79m kWh under this model.

The commercial sector followed with 12.07m kWh, while residential users accounted for 8.14m kWh. Karachi, as a hub of economic and industrial activity, played a significant role in this increased consumption pattern.

The package aimed not only to reduce energy costs but also to encourage sustainable electricity usage through strategic pricing, ultimately promoting economic growth during the winter months.

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