Power tariff for 200 units to go: New targeted subsidy system being worked out: Leghari

Islamabad: Power Minister Awais Leghari disclosed to the Upper House of the Parliament on Tuesday that the federal government is working on replacing the current power tariff system, which unfairly charges consumers who exceed 200 units. Leghari responded to a calling attention notice introduced by Abid Sher Ali from the Pakistan Muslim League Nawaz (PML-N), highlighting the slab-based incremental electricity tariff and billing practices of DISCOs, which impose undue financial burdens on deserving consumers.

Leghari pointed out that the existing system benefits numerous undeserving, financially stable individuals who have installed solar systems, consuming less than 200 units from the grid. He emphasized that it would not be fair to give a uniform discount to all consumers using up to 200 electricity units, as this category also includes those who do not genuinely require the relief.

Currently, about 20 million consumers in Pakistan use up to 200 units monthly, with many of them utilizing solar systems. The minister revealed that the government is focusing on introducing a targeted subsidy system in the power sector, ensuring only deserving consumers benefit from the 200 units subsidized tariff slab. Additionally, the possibility of raising the subsidized slab threshold from 200 units to 250 units is under consideration.