ISLAMABAD: The government is working to end the six-month penalty of higher electricity charges for domestic consumers who exceed the 200-unit monthly threshold by even one unit, while raising the limit to 250 units is also under consideration, Power Minister Awais Leghari told the Senate.
Responding to an attention notice raised by Senator Abid Sher Ali regarding the burden of electricity tariffs on consumers, Leghari said the Power Division was working to address the issue under which crossing the 200-unit limit can result in consumers losing their protected status and facing higher electricity charges for six months.
Abid Sher Ali criticised the existing tariff structure, arguing that a consumer using 201 units could face a substantially higher bill than one consuming 200 units. He questioned how an increase of just one unit could expose a household to significantly higher charges and said the six-month restriction placed an excessive burden on low-income consumers.
Leghari said the government was working to eliminate the six-month penalty associated with exceeding the 200-unit threshold. He also indicated that the government might increase the limit to 250 units, although no final decision or implementation date was announced.
The proposed changes could provide relief to households whose electricity consumption fluctuates slightly from month to month and which risk losing access to subsidised rates because of a marginal increase in usage.
Under the existing tariff framework, domestic consumers are divided into protected and non-protected categories. Eligible protected consumers using up to 200 units a month qualify for subsidised rates, subject to applicable eligibility conditions, including their consumption patterns over the preceding six months. Consumers exceeding the threshold may become ineligible for protected rates and face higher tariffs.
The difference between the two categories can significantly affect monthly bills. Under the tariff rates cited in the existing structure, protected consumers pay Rs10.54 per unit for the first 100 units and Rs13.01 per unit for consumption between 101 and 200 units. Non-protected consumers face higher rates, including Rs22.44 per unit for the first 100 units, Rs28.91 for 101–200 units and Rs33.10 for 201–300 units.
Consequently, a household crossing the 200-unit threshold may face a substantial increase in its basic electricity charges if its protected status changes. The final bill also includes applicable fixed charges, taxes, surcharges and other adjustments.
The six-month eligibility condition has been a particular concern for households whose consumption rises temporarily because of seasonal changes or additional household needs. Under the existing arrangement, exceeding the threshold can have financial consequences beyond the month in which consumption crosses 200 units.
Leghari said the number of consumers using less than 200 units a month had reached around 20 million. However, he argued that providing subsidised rates to all consumers in this category would not be appropriate because some households also have solar systems that reduce their grid electricity consumption.
He said the government intended to direct electricity subsidies towards people living below the poverty line, indicating that the proposed relief would need to take account of consumers’ financial circumstances rather than relying exclusively on monthly grid consumption.
Increasing the threshold to 250 units could allow more households to qualify for protected rates, depending on the final policy and eligibility criteria. Ending the six-month restriction could also prevent a temporary increase in consumption from triggering a prolonged period of higher electricity bills.
However, both proposals remain under consideration, and the minister did not announce a final decision or implementation date. The extent of relief will depend on the government’s eventual decision and the revised tariff mechanism, including how protected status and the six-month consumption requirement are determined.