Federal cabinet approves reversal of electricity price hike for 200 units for 3 months

The federal cabinet has approved the reversal of its earlier decision to increase electricity prices for protected and non-protected consumers using up to 200 units per month for the next three months. 

According to the 24NewsHD TV channel, Prime Minister Shehbaz Sharif urgently approved the summary through circulation to the federal cabinet on Tuesday.

The sources said the federal government will provide a subsidy of Rs50 billion to offer three months of tariff relief for consumers using up to 200 units monthly from July to September 2024.

Previously, the federal cabinet had approved an increase of up to Rs7.12 per unit in the basic electricity tariff. 

As per the previous tariff, the government had decided to increase Rs3.95 per unit for protected consumers using 1 to 100 units monthly and Rs4.10 per unit using 101 to 200 units monthly. 

For the non-protected consumers, in the previous tariff, the government decided to increase Rs7.11 per unit using 1 to 100 units monthly and Rs7.12 per unit using 101 to 200 units monthly.

This increase in the basic tariff was set to take effect from July 1, 2024. 

However, the per-unit tariff for lifeline consumers using up to 50 units per month will remain at Rs3.95 and for those using 51 to 100 units per month, the rate will remain at Rs7.74.

Reporter: Awais Kiyani