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A technician from the Karachi Electric Supply Corporation (KESC), Pakistan's largest city's power supply company, fixes new electricity meters at a residential building in Karachi on May 13, 2010. Pakistan's Prime Minister Yousuf Raza Gilani has announced a radical plan to tackle the nation's debilitating energy shortages, including extending the weekend and banning all-night wedding parties. Pakistan is only able to produce about two thirds of its required electricity, officials said, a crisis blamed on soaring demand, debt, a lack of investment, corruption and a creaking distribution system. AFP PHOTO/ RIZWAN TABASSUM (Photo by RIZWAN TABASSUM / AFP)

Energy Sector

Federal Govt announces relief for consumers using up to 300 electricity units

The federal government announced on Wednesday the reinstatement of reduced fuel cost charges for electricity consumers using up to 300 units and agricultural tube wells, providing long-awaited relief to these segments.

Federal Minister for Energy Awais Leghari revealed that the monthly fuel adjustment charges would be slashed for households consuming up to 300 units and agricultural tube wells to ease financial pressure on low-income consumers and farmers.

According to the Power Division, the relief for consumers using up to 300 units was originally discontinued in June 2015, while agricultural tube wells lost this benefit even earlier, in December 2010.

The division has formally requested the National Electric Power Regulatory Authority (Nepra) to reinstate the reduced charges. Leghari emphasized that the decision aims to alleviate the economic burden on small-scale consumers and the agricultural sector.

This measure is expected to significantly lower monthly electricity bills for both categories, offering much-needed support amid rising living costs.

Earlier, the Power Division hinted at the federal government’s plan to cut electricity prices by Rs6-8 per unit within the next two months. However, Federal Secretary Energy (Power Division) Dr Muhammad Fakhr-e-Alam Irfan told the Senate Standing Committee on Power that reducing taxes on electricity bills would require approval from the International Monetary Fund (IMF).

Officials reiterated that the government’s top priority is to eliminate circular debt, while discussions are underway with a task force on state-owned power plants to optimize operations and cut production costs.

The soaring electricity prices have become a politically sensitive issue, with opposition parties using public frustration to criticize the government’s energy policies and agreements with independent power producers (IPPs).

Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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