Govt’s Rs7.41 electricity relief ends after 3 months

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Govt's Rs7.41 electricity relief ends after 3 months

ISLAMABAD, JUL 1: The federal government’s three-month relief on electricity bills, announced in April to ease the burden on consumers, has now almost completely ended.

Starting this month, electricity consumers will receive only a partial benefit, with the relief set to be entirely withdrawn from next month.

According to official sources, consumers will now get a minor concession of Rs1.55 per unit, out of the originally announced Rs7.41 per unit relief. From next month, even this Rs1.55 relief will be discontinued, marking the complete rollback of the prime minister’s relief package.

Meanwhile, the Power Division has clarified that the federal government’s Rs7.41 per unit relief in electricity bills has not been withdrawn.

Also Read: PM Shehbaz announces massive reduction in electricity prices

In a statement, the division said that the base electricity tariff was also expected to be reduced by up to Rs1.50 per unit, offering further relief to consumers. It added that the relief measures secured through negotiations with independent power producers (IPPs) are still in effect.

According to the Power Division:

In 2024, the average electricity tariff in the tax-paying sector was Rs48.28 per unit.

This is likely to drop to Rs40.34 per unit in July, reflecting a visible reduction of Rs7.92 per unit.

Consumers will also receive a Rs35 relief through the elimination of the PTV license fee from electricity bills.

Additionally, the abolition of provincial electricity duty will result in a further reduction of 90 paisas per unit.

In April, Prime Minister Shehbaz Sharif had announced a Rs7.41 per unit reduction in electricity rates to provide temporary relief amid rising inflation. The government had structured the relief across three months – April, May, and June – through various adjustments, including the quarterly tariff adjustment, fuel cost charges, and petroleum levy relief.

As part of this initiative:

Electricity was reduced by Rs1.90 per unit in the quarterly tariff adjustment for the three-month period.

An additional Rs1.71 per unit relief was given through adjustments in the petroleum levy.

A further Rs0.90 per unit cut was applied through fuel cost adjustments from April to June.

The PM had stated that the electricity price for domestic consumers was Rs48.70, while this year, electricity price for domestic consumers had been reduced by Rs3.50. He then announced that the electricity price for domestic consumers was being reduced by Rs7 and that all domestic consumers would get electricity at Rs34 per unit.

Also Read: Electricity rate reduced by Rs7.41 per unit – calculate your bill

Moreover, the PM stated that the price of electricity per unit for industry was Rs58.50, and by now, that price had reached Rs48 with a decrease of Rs10. He then announced a reduction of Rs7.59 per unit for industry.

However, lifeline consumers using up to 50 units did not benefit from this reduction, as their average bill remained Rs239.

For other domestic consumers:

51 to 100 units: Bill remained at Rs937.
1 to 100 units (non-protected): Bill reduced from Rs1,467 to Rs852.
Up to 200 units: Bill decreased from Rs3,530 to Rs2,302.
300 units: New bill set at Rs10,209, down from Rs12,378.
More than 400 units: Bill reduced from Rs22,280 to Rs19,384.