ISLAMABAD: The federal government has proposed imposing a fixed monthly electricity charge ranging from Rs200 to Rs675 on more than 28.5 million residential consumers to generate around Rs125 billion, aimed at funding a Rs4.04 per unit relief package for industrial users.
The revised Schedule of Tariff (SoT) was submitted to the National Electric Power Regulatory Authority (Nepra) on Friday and put on notice for a public hearing for immediate implementation within the current month. Officials said the hearing was a procedural requirement, as the government’s policy guidelines are binding on the regulator.
Approved by the federal cabinet on February 4, the proposal introduces fixed charges for almost all domestic consumers, excluding lifeline users consuming less than 100 units per month. The measure comes less than three weeks after the government notified the national average base tariff on January 12, effective from January 1, while withholding a 62 paisa per unit reduction determined by Nepra.
According to the power division, the fixed charge would generate about Rs106 billion in tariff revenue and Rs19 billion in sales tax, enabling a reduction in cross-subsidy paid by industrial consumers without breaching IMF-agreed subsidy limits.
Under the new structure, consumers using up to 100 units will pay a fixed Rs200 per month, while those consuming up to 200 units will pay Rs300, provided they remain within limits for six consecutive months. Higher slabs will face progressively increased fixed charges, rising to Rs675 per month for consumers using more than 500 units.
The power division justified the move by citing high fixed costs in the power system, declining grid consumption due to rooftop solar, and an over-reliance on volumetric tariffs. It said the revised structure would ensure equitable cost recovery and long-term financial sustainability of the grid, without altering the targeted Rs249 billion tariff differential subsidy.
The decision coincided with Nepra’s notification of a positive fuel cost adjustment for December 2025, resulting in a net increase of about Rs1.21 per unit in February bills for most consumers.
While the government says the move will stabilise the power sector and support exports, the decision has drawn criticism from business groups and consumer representatives, who warn it will further burden households already struggling with high electricity costs.
Story by Khaleeq Kiani
