Winter package: Rs26 per unit relief on extra consumption of power announced

Move to allow industries, commercial, general services and households to save significantly compared to prevailing tariffs

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A power transmission tower in Karachi, January 24, 2023. — Reuters
A power transmission tower in Karachi, January 24, 2023. — Reuters
  • Govt announces "Bijli Sahulat Package" for winter months.
  • “Initiative aims to encourage higher consumption”: Power Division
  • Domestic consumers can also benefit from discounted rates.

In an effort to manage seasonal electricity demand and stimulate economic growth, the government on Friday announced the "Bijli Sahulat Package" for the winter months from December 2024 to February 2025.

According to a statement issued by the Power Division, a flat rate of Rs26.07 per unit will be offered for any additional electricity demand above the benchmark historical average.

“Recognising that electricity demand in Pakistan peaks during summer and significantly decreases in winter, this initiative aims to encourage higher consumption during the low-demand winter season by offering reduced electricity rates.”

This package will allow industries, commercial, general services and households to save significantly as compared to the prevailing tariffs.

It further said that the government is committed to fostering increased industrial and commercial activity as a driver of economic growth.

“Industries that consume additional electricity, beyond a set benchmark based on their historical consumption, will benefit from 18% to 37% discount on the prevailing tariff rate,” read the statement.

The Power Division said that this initiative encourages industries to increase production capacity while benefiting from lower average electricity costs, making their operations more cost-effective.

Domestic consumers will also benefit from the discounted rate for additional winter electricity consumption, “making it an attractive option for heating and other energy needs that would otherwise rely on gas”.

This initiative reflects the government’s commitment to innovative approaches that not only balance electricity demand across seasons but also provide economic advantages to consumers.

Furthermore, all the incremental sales over and above 25% of the benchmark consumption would be charged normal tariffs as notified by the government, it added.

Domestic power consumers to save significantly: PM

Lauding the "Bijli Sahulat Package", Prime Minister Shehbaz Sharif said that the initiative would help domestic power consumers save significantly on excess consumption.

He stated this while addressing a ceremony held in connection with the birth anniversary of Dr Allama Muhammad Iqbal Day —Poet of the East — in the federal capital.

Speaking on the occasion, the premier announced the three-month winter package, saying: “Industries’ wheel in the country will move swiftly due to the winter package.”

Under the new package, a flat rate of Rs26.07 per unit would be offered to domestic consumers on extra consumption of electricity during the three-month period, the premier added. He said that the move will help the domestic consumers “save significantly”. He also thanked Power Minister Awais Leghari for the initiative.

Highlighting his government’s achievements, PM Shehbaz said that they were taking the country forward in light of Iqbal’s message.

“The country’s economic situation improving gradually.”

Due to the government’s effective measures, inflation dropped to 6.7% as compared to 30% during the previous year. Interest rate has been slashed to 15%, the PM said, adding that that the rate was at 23% in 2022.

He further said that the government was introducing reforms in each sector to put the country on the upward trajectory.