The federal government has opted to rescind the recent escalation in energy tariffs for users that utilise up to 200 units per month, providing substantial respite for countless homes.

Under the instruction of Prime Minister Shehbaz Sharif, this resolution aims to provide significant financial assistance to families with low and moderate incomes across the nation.

The federal cabinet has approved a summary about the removal of the price rise via circulation.

Prime Minister Sharif has directed that the federal cabinet get approval of the circulating summary urgently in order to accelerate the execution of this relief measure. As per the government’s proposal, the updated pricing would apply to users who utilise up to 200 units of power between July and September 2024.

In order to counterbalance the effects of this decision, the federal government would provide a subsidy amounting to around Rs50 billion. This significant subsidy is intended to alleviate the financial strain on the national treasury while guaranteeing that customers promptly get relief on their power costs.

To give ongoing assistance, the government has kept the current pricing unchanged for lifeline subscribers, who belong to one of the most financially disadvantaged groups in society.

• Consumers with a monthly use of up to 50 units would maintain a tariff rate of Rs3.95 per unit.
• Consumers with a monthly use of 51 to 100 units would continue to be charged at a rate of Rs7.74 per unit.

These policies guarantee the protection of the most economically disadvantaged families from any rise in their energy expenses.

The prime minister’s approval will result in the formal withdrawal of the rise for users who use up to 200 units, effective today (Tuesday). This move demonstrates the government’s dedication to reducing the financial burdens experienced by individuals, especially given the present economic difficulties.

Recent estimates indicate that the nation is now facing a substantial deficit of 5,600 megawatts in electrical supply, resulting in widespread power outages in both urban and rural regions. As per information from the Power Division, the current national power demand is 25,000MW, however the output is falling behind at 19,400MW.

Consequently, there has been an increase in electrical load shedding, with metropolitan areas experiencing up to eight hours of power outages and rural regions enduring up to ten hours. In regions with significant transmission losses, inhabitants are facing extended periods of 12 to 14 hours without electricity.

On July 5th, Pakistanis, who were already struggling with inflation, were hit with another setback when the National Electricity Regulatory Authority (NEPRA) declared a substantial increase in the electricity rate. The implementation of the new tariff results in an increase of Rs3.32 per unit, which would have a direct effect on the financial plans of both households and businesses.