The Economic Coordination Committee (ECC) of the Cabinet has approved a historic winter relief package to provide temporary financial relief to electricity consumers nationwide.
Under the package, a flat rate of Rs26.7 per unit will apply to additional electricity consumption for households and businesses exceeding 200 units. The decision, which was approved in a meeting chaired by Finance Minister Muhammad Aurangzeb, follows a proposal from the Power Division. The package will be implemented from December 2024 through February 2025 and will benefit eligible consumers of both General Services and K-Electric.
This initiative aims to assist domestic, commercial, and industrial consumers, offering varying levels of relief. Households and businesses consuming more than 200 units will see significant savings. Commercial users are expected to benefit from a reduction of 34% to 47%, while industries could experience cost cuts between 18% and 37%. The government has already secured approval for the package from the International Monetary Fund (IMF).
Eligibility will be determined by comparing electricity usage in the winter months of 2024 with the average consumption from the same months over the past three years.
The Finance Ministry expects the package will encourage higher electricity consumption, reducing reliance on gas during the winter months and maximizing the use of generated electricity.
In addition, the ECC approved the transfer of Rs3.14 billion in emergency relief funds to the National Disaster Management Authority (NDMA) to support ongoing rescue and relief operations for affected communities.
Historically, electricity consumption has decreased during the winter months, with a 6% drop recorded in the winter of 2023 and an 8% decline in 2024. The government hopes this package will reverse this trend, encouraging greater electricity use and benefiting both consumers and the energy sector.
