Electricity bills to drop as govt announces additional relief

The federal government on Friday decided to extend relief to electricity consumers by increasing the tariff differential subsidy for three months, from April to June.

The government has submitted an application to the National Electric Power Regulatory Authority (Nepra) for approval, which is set to be heard on April 4.

Under this move, consumers of distribution companies (Discos) and K-Electric (KE) will receive a relief of Rs1.71 per unit, applicable to all categories except lifeline consumers.

This decision follows the International Monetary Fund’s (IMF) recent approval for a reduction in electricity tariffs. The global lender had permitted a decrease of Rs1 per unit in power prices, benefiting all electricity consumers.

The relief amount will be adjusted using revenue collected from a levy imposed on captive power plants, particularly targeting gas usage in these industrial units.

Meanwhile, the government is also working on a broader relief package for electricity consumers, which will be announced after securing approval from the IMF.