The interim federal cabinet, under the leadership of Prime Minister Anwaarul Haq Kakar, held a meeting in Islamabad to consider the recommendations presented by the Ministry of Energy regarding the issue of inflated electricity bills. This meeting was a response to public demonstrations that took place, with many individuals protesting against the excessively high electricity bills following a significant increase in the national average tariff. The interim Prime Minister called for an “emergency” meeting to address this issue after the public outrage.
The interim Information Minister, Murtaza Solangi, revealed that the energy ministry has finalized a list of proposals aimed at providing relief to the people affected by inflation. These proposals were scheduled to be presented during the cabinet meeting. The energy ministry confirmed this information earlier today on social media platform X (formerly known as Twitter).
The minister emphasized the government’s responsibility to provide relief to the general population, given their temporary role in running the country. However, he refrained from sharing detailed information about the specific relief measures for electricity consumers, particularly those whose power bill deadline was on August 28.
A plan was discussed during the previous meeting on Sunday to withdraw subsidized electricity availed by distribution companies (Discos) and government officers in grade 17 and above.
Simultaneously, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) expressed its opposition to the recent increase in electricity prices. In a press conference held in Lahore, the FPCCI President, Irfan Iqbal Sheikh, stated that the burden of price hikes had become unbearable for the people. While acknowledging the challenging situation faced by the interim government, Sheikh emphasized that prices should not exceed the paying capacity of the citizens.
The rising electricity costs have put power companies in a difficult situation, leading to a decline in consumption and the transfer of additional capacity charges to consumers. To mitigate the impact of this “price shock,” the government proposed a staggered imposition of Rs146 billion quarterly charges over a six-month period instead of three months.
This situation arose during a public hearing organized by the National Electric Power Regulatory Authority (Nepra) regarding the government’s request for a Rs5.40 per unit additional quarterly tariff adjustment (QTA) for April-June 2023. The Power Division proposed charging consumers at a rate of Rs3.55 per unit for six months, starting from October 2023. This modification was aimed at reducing the burden on consumers who are still struggling to absorb the 26% increase in the base national rates notified last month.
The Power Division also suggested postponing the implementation of the Rs3.55 per unit additional charge until September, allowing the existing quarterly adjustment of Rs1.24 per unit to lapse. As a result, the overall tariff increase over six months, from October 2023 to March 2024, would be Rs2.31 per unit.