• Proposes fixed monthly electricity charges of Rs200-675 for over 28.5m households
• Aims to raise Rs125bn to fund Rs4.04-per-unit relief for industry
• Nepra okays fuel adjustment; Feb bills to rise by Rs1.21 per unit
ISLAMABAD: The government has proposed imposing a monthly fixed charge of between Rs200 and Rs675 on more than 28.5 million residential electricity consumers to raise around Rs125 billion and fund a relief package of Rs4.04 per unit for industrial users.
The revised Schedule of Tariff (SoT) was submitted to the National Electric Power Regulatory Authority (Nepra) on Friday evening and was immediately put on notice for a customary public hearing on the first available date after the weekend for immediate implementation within the current month.
“This is just a procedural formality. The government guidelines are binding on Nepra,” an official said when asked about a short notice for a public hearing.
The power division told Nepra that the imposition of a fixed charge on almost all residential consumers (barring lifeline users permanently using less than 100 units per month) was approved by the federal cabinet on Feb 4.
The change in SOT comes in less than three weeks after the government had notified the base national average tariff on Jan 12 for application with effect from Jan 1, denying a benefit to consumers of about 62 paise per unit reduction determined by the regulator.
The new fixed charge would generate about Rs106bn in tariff, besides about Rs19bn in sales tax, to slash cross-subsidy by industrial consumers with a Rs4.04 per unit tariff cut without affecting federal budget subsidy targets committed to the International Monetary Fund (IMF).
Under the decision, a Rs200 per month fixed amount would be charged to about 9.9m consumers using less than 100 units and Rs300 on more than 6.1m users consuming less than 200 units per month in the protected category.
They must maintain their consumption within these limits to qualify their average unit price at Rs10.54 and Rs13 for a continuous six months, respectively.
For non-protected consumers who exceed the 100-unit threshold even once in six months, a fixed charge of Rs275 would apply to about 5.7m users, whose per-unit rate would rise above Rs22.44, excluding taxes.
The second slab of 200 units would attract a Rs300 per unit fixed charge and would affect around 2.24m consumers.
The fixed monthly charge would increase to Rs350 for 2.9m consumers using 201-300 units, while around one million people consuming 301-400 units would pay Rs400 per month.
Around 400,000 consumers using 401-500 units would be charged Rs500 and all above 501 units per month would swallow a bitter pill of Rs675. About 0.41m consumers fall in this category.
