ISLAMABAD: At a time when electricity bills had become exorbitant and seemed to have reached a breaking point, Prime Minister Shehbaz Sharif on Friday announced a three-month electricity relief package for winter – December, January and February – providing a relief of up to Rs26.7 per unit for domestic, Rs15.5 for industrial and Rs22.71 for commercial consumers.
Speaking at a function to commemorate the birth anniversary of Dr Muhammad Iqbal, he said that “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…it’s a considerable reduction in electricity prices […] the electricity relief package will be implemented in bills from December 2024 to February 2025,” he added.
He said that “a flat rate of Rs26.07 per unit will be offered for any additional electricity to household consumers, through which they will save from Rs11.42 per unit to Rs26 per unit.
“There are different slabs for consumers who use additional power as it’s aimed at fostering industrial and commercial activity in the country,” he added.
For December, January and February, the government has decided to reduce electricity rates for those who use additional units, he said, adding, “From December 2024 to February 2025, these discounts will be reflected in the bills.”
Sharif said that for industries, there will be savings of Rs5.72-Rs15 per unit, adding the reduced industrial rates will encourage economic opportunity and help industry run smoothly, as the industries can expect savings of between 18-37pc based on current rates.
He also said that commercial consumers will experience savings of between Rs13.40 per unit and Rs22 per unit. “There will be savings of Rs34-Rs47 on incremental use,” he added.
“This will ensure that industries and business will run smoothly and our economy will be strong.”
Following the announcement by the prime minister, the Power Division announced the power relief scheme – called the “Bijli Sahulat” package – offering reduced electricity rates to consumers to encourage electricity use during the low-demand winter season.
It said that the reduced rates will be offered to domestic, commercial and industrial consumers from December 2024 until February 2025, “in an effort to manage seasonal electricity demand and drive economic growth”.
A flat rate of Rs26.07 per unit will be offered for any additional electricity demand above the benchmark historical average, it said, adding it will allow industries, commercial, general services and households to save significantly compared to the prevailing tariffs.
Besides, the new rates will only apply to 25pc units over the reference benchmark, with all incremental sales over 25pc charged at existing rates notified by the government.
The statement said that industries consuming additional electricity beyond the historical benchmark can avail an 18-37 per cent discount on prevailing power rates.
“The government is committed to fostering increased industrial and commercial activity as a driver of economic growth,” it said.
“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,” it added.
Copyright Business Recorder, 2024