Federal Minister for Energy Awais Leghari has announced plans to abolish the additional electricity charges imposed on consumers who exceed the 200-unit monthly consumption threshold, saying the formula will be discontinued for a six-month period.
Speaking during a Senate session, Leghari said the government was working to address the issue and would introduce a new policy soon. He added that the existing system disproportionately benefits wealthier consumers, while low-income households receive less relief.
The minister also said the circular debt in the energy sector had declined to Rs1,670 billion, adding that the government aimed to eliminate it within the next four years. He said the debt servicing surcharge on circular debt would also be abolished.
Leghari further stated that budgetary support for the Ministry of Energy had fallen from Rs1,180 billion when the current government took office to Rs700 billion in the current fiscal year.
He said losses incurred by power distribution companies (DISCOs) had declined annually, but consumers had yet to benefit from the improvement.
During the session, Senator Abid Sher Ali highlighted the financial burden of electricity tariffs on millions of Pakistanis. He said even bills for protected consumers had become unaffordable and that crossing the 200-unit threshold by just one unit could cause bills to double.
He also questioned whether ordinary consumers were being forced to bear the cost of electricity theft in distribution companies.
Responding to the concerns, Leghari said electricity tariff slabs were necessary to resolve the issue in the long term. He added that nearly 20 million consumers used up to 200 units of electricity, with many increasingly relying on solar energy.
The minister said the government was working on a system that would provide relief based on poverty levels rather than electricity consumption alone.
