ISLAMABAD: The federal government is reportedly considering a major change in Pakistan’s electricity tariff structure. The move could provide significant relief to thousands of low-income households.
According to sources, the non-protected status which currently applies to any household using more than 200 units of electricity may soon be revised. Under the proposal, this category would only apply to consumers using 301 units or more in a month.
At present, if a consumer uses even 201 units, they are shifted to the non-protected category. This results in much higher bills for the next six months, regardless of whether their usage later drops below 200 units.
The change under consideration would prevent this jump for households that barely cross the 200-unit mark.
Government officials say this policy adjustment could reduce the financial burden on thousands of families who are already struggling with rising living costs.
Concerns Raised in Federal Cabinet Meeting
The matter was reportedly discussed in detail at a recent federal cabinet meeting. Several ministers criticized the current system, calling it unfair to low-income electricity users.
One cabinet member noted, “A person using 201 units pays almost Rs5,000 extra over six months. That is harsh, especially for poor families.”
Prime Minister Shehbaz Sharif was briefed on the issue. He has reportedly hinted at forming a high-level committee to examine the policy and suggest reforms.
Committee to Review Policy in Detail
Sources say the proposed committee will study the issue thoroughly. It will then submit its findings and recommendations to the federal cabinet for approval.
Another idea under consideration is to apply the non-protected slab only in the month when the limit is crossed. Under this model, consumers would not be locked into higher rates for six months, as happens under the current system.
The existing 201-unit non-protected slab was introduced by the National Electric Power Regulatory Authority (NEPRA) and the Ministry of Power.
It was meant to target higher electricity consumers, but critics argue it has ended up penalizing many low-usage households.
Public backlash against the system has been growing, with many calling for a fairer billing method.
Possible Tariff Reductions in the Coming Months
In a related development, electricity prices in Pakistan could see further reductions in the coming months.
Sources said that lower tariffs are likely as part of quarterly and fuel price adjustments. These reductions are expected to reflect in the August, September, and October 2025 billing cycles.
Power distribution companies have already submitted a request to NEPRA for the fourth quarterly adjustment. A public hearing on the matter was held on August 4, 2025.
According to details, the proposed quarterly adjustment could result in a negative tariff of Rs1.89 per unit.
This expected decrease is mainly due to an amended agreement with power generation companies, which has reduced certain operational costs.
In addition, the quarterly adjustment mechanism could bring an extra Rs0.34 per unit reduction in electricity bills for August.
Impact on Consumers
If both the tariff category change and the price reductions are approved, households across Pakistan could see noticeable relief in their monthly electricity bills.
Experts believe that such measures could not only help low-income groups but also improve public trust in the government’s energy policies.
However, final decisions will depend on the outcome of the committee’s review and NEPRA’s approval process.
The PTA has intensified its crackdown on illegal online activities, recently blocking 184 gambling websites and apps across Pakistan.
