Prime Minister Shehbaz Sharif, in a major relief for the public, announced the reduction of electricity prices across the country on Thursday.
The decision to reduce electricity prices in Pakistan had been anticipated for a while following International Monetary Fund’s (IMF) approval.
On April 3, Shehbaz Sharif while addressing a press conference announced slashing the electricity cost by Rs7.41 per unit for about 40.3 million consumers.
The significant policy is set to benefit primarily 35 million residential electricity consumers. The decision was taken to ease the burden on general public, and incentivise usage from the national grid.
Electricity prices across the country have shot up in the past two years due to many reasons, primarily because of IMF’s condition to remove all subsidies and generate revenue through increased taxes on utility bills.
Hence, PM’s electricity prices reduction comes at a much-needed financial relief for citizens. The government was able to reduce to electricity prices due to multiple reasons, including renegotiating contracts with many IPPs, decreasing global oil prices, and quarterly tariff adjustments.
Calculate how much electricity bill you will save
Following the reduced electricity rates, the revised residential electricity rates will be Rs 34.37 per unit, down from the previous rate of Rs 48.70 per unit. While the industrial consumers will get the revised rates at Rs40.51 per unit, decreased by Rs7.69 per unit.
Residential Consumers
200 Units Users
For these protected consumers, the old rate under this slab was Rs9,742 and the new rates will be Rs7,528. The consumers using 200 units of electricity per month would be saving Rs2,212 every month.
300 Units Users
Under this slab, the old rate was Rs14,610 and the revised rates are Rs11,292 following the reduction in electricity prices. You would be saving Rs3,318 every month if you come under this usage slab.
500 Units Users
Those domestic consumers who are using more than 300 units but under 500 will have revised bill of Rs18,820 instead of the old bill Rs24,350. Under this slab, people would be saving Rs5,530.
Industrial Consumers
As we know that the PM’s relief in reducing electricity prices is also applicable to industrial consumers.
1,000 Units Users
Those coming under this slab had electricity bill of Rs58,500 per month but the revised rates would reduce this bill to Rs40,510 per month. This means that there is a whopping Rs17,990 worth of saving every month.
3,000 Unit Users
The electricity bill under old rates would be Rs175,500 and the new rates are Rs121,530 with a monthly saving of Rs53,970.
