Government to introduce more slabs for electricity users to reduce subsidy load

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slabs for electricity

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.

What are your views on this? Share with us in the comments below.

  • Subsidy should be given based on income slabs rather than usage. Rich man on vacation may use less units in his empty house than a poor man living in small house. Otherwise the benefit will never reach those who deserve it the most. Same logic applies to subsidy on atta/cheeni/daal. I see many people having their own car but buying stuff from utility store.

  • astafgfirullah , the unit from 301 to 700 is 19.55 rupees and its already too much.

    ab kya khoon nichorna hai jism ka?

  • There is an urgent need to reduce electricity price, as the Pakistani nation is paying for world’s most expensive electricity. Price are very very high and unbearable for middle and lower middle class of the country

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