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Higher Bills Ahead as Electricity Relief Measures Set to Expire

Higher Bills Ahead as Electricity Relief Measures Set to Expire

A series of electricity relief measures introduced earlier this year under the Prime Minister’s affordable electricity package are now reaching their expiration dates, signaling a potential rise in power bills for millions of consumers across the country. Several unit-based concessions, introduced through quarterly adjustments and reductions in petroleum levies, are gradually being withdrawn as the

A series of electricity relief measures introduced earlier this year under the Prime Minister’s affordable electricity package are now reaching their expiration dates, signaling a potential rise in power bills for millions of consumers across the country. Several unit-based concessions, introduced through quarterly adjustments and reductions in petroleum levies, are gradually being withdrawn as the government phases out temporary support mechanisms.

A series of electricity relief

One of the latest cuts includes the end of a Rs. 1.55 per unit relief that was part of the third quarter adjustment for the previous financial year. This follows the earlier withdrawal of a more substantial Rs. 4.51 per unit relief, which had included a targeted Rs. 3.61 per unit reduction for electricity users in Karachi. The phasing out of these subsidies comes at a time when consumers are already facing pressure from inflation and rising fuel costs.

In June, other relief measures had also lapsed, including a Rs. 1.90 per unit cut tied to the second quarter adjustment and a Rs. 1.71 per unit reduction in petroleum levy. Additionally, a 90 paisa per unit concession under the Retained Fuel Charges Adjustment for DISCO consumers has also come to an end. While some minor reliefs under quarterly adjustments and the petroleum levy are still in place, they are expected to conclude soon as well.

the Retained Fuel Charges Adjustment for DISCO

Earlier in April, the Prime Minister had announced a major Rs. 7.41 per unit reduction for domestic users, aimed at easing the burden of high electricity bills. But even that relief appears to be shrinking, with the base tariff recently adjusted downward by just Rs. 1.16 per unit and the monthly adjustment for DISCO users lowered by only 50 paisa.

The winding down of these temporary benefits comes as the government tries to balance public relief with commitments to fiscal reforms. For many households, especially those already struggling with costs of living, the end of these electricity concessions could add more pressure in the months ahead.

 the government tries to balance public relief

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