Government to introduce more slabs for electricity users to reduce subsidy load
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The government has been planning to introduce more slabs for electricity users to ensure the implementation of targeted subsidies in the next budgetary year 2021-22.
The SAPM on Power and Petroleum, Mr. Tabish Gauhar, said, “Yes, we are considering it and will cut out slabs starting from 200-300 units 301-400 units, 401-500 units, 501-600 units and 601-700 units and so on for assuring the targeted subsidy.”
He said that the consumers who use 301 units and 699 units are getting the same subsidy, which is taking a heavy toll on the government’s national exchequer.
The decision for more slabs will help generate new categories of electricity rates for customers and will help reduce the size of subsidy too.”
Tabish said that the targeted subsidy regime in electricity tariffs will be implemented in two phases. Under the first phase, there will be no increase in the rate, but under the second phase, there will be a marginal increase in tariff.
Sources have revealed that with implementing a new targeted subsidy regime, almost eight million consumers would be out of the subsidy net. Currently, nearly 22 million electricity consumers are getting the subsidy. However, it will be contained to 13.9 million users through which
around PKR 42 billion would be saved per year in subsidy expenditure.
The slab of 301-700 units would be divided into four slabs that include 301-400, 401-500, 501-600, and 601-700.
Moreover, all power distribution companies will be asking National Electric Power Regulatory Authority to make modifications in the tariffs of the new category of electricity consumers keeping in view the targeted subsidy.
All this will be done after the decision regarding the quantum of the amount to be budgeted as subsidy for next fiscal 2021-22.
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