PM Shehbaz announces three-month power subsidy package for winter season

Prime Minister Shehbaz Sharif on Friday announced a three-month electricity relief package for consumers to encourage electricity use during the low-demand winter season.

“The government has decided to provide an electricity relief package on the additional consumption of power for the three months of winter, December, January, and February,” he said while addressing an event to honour poet Allama Iqbal on the eve of his birth anniversary.

The premier said that a flat rate of Rs26.07 per unit would be offered for any additional electricity to the household consumers.

“The household consumers will save from Rs11.42 per unit to Rs26 per unit,” he added.

The Power Division has also confirmed the development in a statement.

It said that the reduced rates will be offered to domestic, commercial and industrial consumers from December 2024 until February 2025, “to manage seasonal electricity demand and drive economic growth”.

The division added that the new rates will only apply to 25 percent of units over the reference benchmark, with all incremental sales over 25% charged at existing rates notified by the government.

Furthermore, the industries consuming additional electricity beyond the historical benchmark can avail an 18 to 37 percent discount on prevailing power rates.

“The government is committed to fostering increased industrial and commercial activity as a driver of economic growth,” the statement added.

“Households will also benefit from the discounted rate for additional winter electricity consumption, making it an attractive option for heating and other energy needs that would otherwise rely on gas.”

The prime minister’s announcement comes a day after the Nati­­onal Electric Power Regu­latory Authority (NEPRA) notified an Rs1.28 per unit decrease in electricity charges due to the adjustment of fuel prices in September.

In September, NEPRA allowed an Rs1.743 per unit increase in electricity rates across the country for three months — Sept to Nov — to provide Rs43.23 billion funds to ex-Wap­da distribution companies.