The government is considering increasing the electricity usage limit for subsidized rates from 200 to 300 units to provide relief to consumers facing additional charges. Sources in the Ministry of Energy revealed that a high-level committee is being formed to assess whether the threshold should be raised, following mounting complaints from citizens about extra charges when their monthly consumption slightly exceeds 200 units.
Currently, electricity customers who use more than 200 units a month are reclassified from “protected” to “non-protected,” resulting in a sharp hike in their per-unit rate and an additional charge of around Rs 5,000. Lawmakers have raised concerns to Prime Minister Shehbaz Sharif, arguing that the current threshold unfairly penalizes households with marginally higher electricity needs, especially among the low- and middle-income segments.
The committee will review the classification system, with the proposal aiming to extend subsidized, protected rates to those using up to 300 units. This move would shift the non-protected classification to consumers who use above 300 units rather than the current 200-unit limit. Lawmakers maintain that the energy needs of families have grown and the existing limit is outdated, putting undue pressure on household budgets.
Ministry sources stated that the committee will also analyze the financial impact that raising the protected unit threshold could have on the government and the power sector. If the recommendation is approved, millions of consumers might benefit from lower bills and reduced chances of being pushed into higher tariffs due to marginally increased electricity usage.
