Electricity Could Get Cheaper for Small Consumers

The Power Division is considering a proposal to provide relief to non-protected domestic electricity consumers by revisiting the existing protected consumer formula, Ministry of Energy sources told ProPakistani.

Under the current mechanism, a household loses its protected consumer status if its electricity consumption exceeds 200 units even once.

The government is considering a proposal under which the additional tariff applicable to consumption above 200 units could be charged only in the month when the threshold is crossed, instead of requiring consumers to pay higher rates for several subsequent months.

Under the existing formula, consumers who exceed the 200 unit threshold are required to pay higher rates for up to six months, even if their electricity consumption later falls below the threshold.

The proposed review is aimed at addressing the impact of the current mechanism on domestic consumers and providing relief to households whose consumption temporarily exceeds 200 units.

Meanwhile, the issue of providing electricity to Bitcoin mining operations at concessional rates remains unresolved, according to the sources.

The government has so far been unable to reach an understanding with the International Monetary Fund on the proposal for lower electricity tariffs for Bitcoin mining. The matter is expected to be raised again with the IMF team during upcoming talks, sources added.

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