Pakistan’s Economic Coordination Committee (ECC) has approved discounted electricity rates for the winter months, aiming to boost consumption and lessen the reliance on natural gas for heating, as announced by the finance ministry.
The initiative, set to run from December 2024 to February 2025, will apply to industrial, domestic, commercial, and general services consumers of state distribution companies and K-Electric in Karachi. Its objective is to optimize electricity generation and shift demand away from gas during the colder months.
The discount, ranging from 18-50%, will be applied to incremental consumption, calculated using the average usage over the past three years. For domestic consumers, additional electricity will be charged at Rs26.07 per unit, offering a 30-50% discount compared to the base rates of Rs37.49 to Rs52.07 per unit.
This move is designed to ease the burden of recent electricity tariff increases, influenced by IMF reforms. It is also expected to reduce electricity costs for businesses by 7-8%, potentially stimulating industrial growth.
The energy ministry pointed out that electricity demand in Pakistan drops by 60% during the winter, forcing many utilities to scale back. The new package is intended to shift some of the demand to electricity, thereby reducing the country’s dependence on expensive natural gas and wood for heating, benefiting both consumers and the energy sector.
