Govt plans to reduce subsidy for power consumers

For the inflation-hit public, there is another bad news for the power consumers as the government has made a plan to reduce the subsidy given on electricity, reported 24NewsHD TV channel.

Sources informed 24NewsHD on Monday that the government was advised to slash 40% subsidy given to the undeserving power consumers. This would result in Rs57 billion savings.

Sources revealed that the undeserving consumers are being given an annual subsidy to the tune of Rs142 billion.

According to the documents, the process of subsidy structuring is suggested to be completed in three stages.

For domestic consumers, there is a suggestion of restructuring of power tariff. The government is recommended to form a new category for those consumers who are using 200 units per month. The customers who will use 200 units per month for a period of six months consecutively, are recommended to remain safe from the effects of power tariff price surge.

The documents suggest a gradual reduction in the net subsidy for the undeserving consumers.

The sources said the circulation debt will be decreased following the reduction in the subsidy. The subsidy will be given to the deserving consumers only, they maintained and added that the deserving power customers will be safeguarded against the rise in electricity prices.

Sources further divulged that the government has been advised to abolish subsidies for undeserving consumers in phases in a period of five years. It is also recommended to withdraw the previously available slab’s benefit to the undeserving consumers.

Reporter Awais Kiyani