Govt announces power relief package for winter

The Power Division unveiled the “Bijli Sahulat” package on Friday, a winter power relief initiative offering discounted electricity rates to encourage higher consumption during the low-demand season. This package, aimed at reducing energy costs for consumers, seeks to boost electricity usage from December 2024 to February 2025.

Announced on Thursday via social media platform X, the National Electric Power Regulatory Authority (Nepra) confirmed a Rs1.28 per unit decrease in charges as a fuel price adjustment for September. However, in the same month, Nepra had approved an Rs1.743 per unit increase across Pakistan to raise Rs43.23 billion for ex-Wapda distribution companies, effective from September to November.

According to a Power Division statement, domestic, commercial, and industrial consumers can benefit from reduced rates over the winter period. A flat rate of Rs26.07 per unit will apply to any electricity usage above the benchmark historical average, providing significant savings over standard tariffs for industries, commercial operations, and households alike. Notably, the new rates will only apply to 25% of units above the reference benchmark, with any usage exceeding that limit billed at the current government-notified rates.

The package also provides industrial consumers with discounts ranging from 18-37% on incremental electricity usage beyond historical averages, helping reduce production costs and encouraging economic activity. The Power Division emphasized that this scheme aligns with the government’s goal to stimulate economic growth through increased industrial and commercial activities.

Additionally, households using more electricity than usual during winter, particularly for heating and other energy needs, can take advantage of the reduced rates, potentially alleviating the strain on gas supplies.

Power Minister Awais Khan Leghari introduced the package on X, calling it a significant initiative by the Government of Pakistan to lower electricity costs and stimulate the economy. He highlighted that special discounts on excess electricity usage would not only reduce bills but also contribute to economic growth.

Prime Minister Shehbaz Sharif further endorsed the initiative during an address at an Iqbal Day ceremony, noting that the reduced rates from December 2024 to February 2025 are expected to benefit consumers through various discount slabs. He specified that households could save between Rs11.42 and Rs26 per unit, while industrial consumers could save Rs5.72 to Rs15 per unit based on usage levels. Commercial consumers would see reductions of Rs13.40 to Rs22 per unit, with savings up to Rs47 for increased consumption.

The Prime Minister underscored that these reduced rates would allow industries to operate more smoothly, bolstering economic stability. With anticipated savings of 18-37% on current rates, industries and businesses could enjoy more competitive production costs, fostering economic resilience.