Nepra Okays to Drop 8m consumers from subsidy network

News Report

Islamabad: National Electric Power Regulatory Authority (Nepra) on Thursday allowed the government to cut subsidies for power consumers to take 8 million consumers out of the subsidy net.

In its decision, it also increased the benchmark for lifeline consumers from 50 to 100 units per month.

At present, as many as 22 million electricity consumers are availing subsidies.

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However, after the recent decision of the Nepra, the government is able now to reduce power subsidy to 13.9 million consumers.

They will also receive subsidies through the Ehsaas social welfare program.

NEPRA has issued a decision in this regard.

The Authority approved Phase-I of the program only, keeping the consumers’ rights prime, after ensuring that it has no financial implication on consumers.

The Authority had accepted the energy ministry’s request to cut subsidies.

The Government had shared its vision to provide subsidies through Ehsaas Program while linking it to residential electricity meters with CNICs.

The regulator has directed the energy ministry to ensure the provision of detailed workings including the financial impact on each category of consumers, at the time of submission of Phase-II and Phase-III to the Authority.

The Authority would independently process Phase-II and Phase-III on its merits and would only consider after it conducts its own due diligence.

The regulator has also bifurcated Non-Time of Use (ToU) consumers into two blocks of Protected and Unprotected categories.

It has divided the 301-700 slab into four slabs i.e. 301-400, 401-500, 501-600 & 601-700 with the same tariff.

The regulator has also modified the Definition of LifeLine Consumer to include consumption up to 100 units (presently lifeline includes up to 50 units), having a maximum of last twelve months and current month’s consumption of 100 units.

However, the government will continue two rates for 50 and 100 units.

It is worth mentioning here that the lifeline consumers using up to 50 units are paying Rs 3.95 per unit while the consumers using up to 100 units paying Rs 7 per unit.

After the decision, the consumers using up to 100 units per month will also pay Rs 3.95 per unit.

Similarly, Nepra has introduced a new category of consumers consuming 200 kWh per month.