Cabinet Favors Seasonal Electricity Package
The federal Cabinet approved the seasonal electricity package for residential and commercial consumers in an effort to promote electricity consumption during winter’s off-peak months and reduce capacity payments.
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It is pertinent to note that during off-peak months, the government faces the problem of low power demand while paying high capacity payments for unused electricity. In contrast, consumers will face severe gas shortages due to the increased demand for gas.
Earlier in the winter of fiscal year 2019-20 (FY20), the Pakistan Tehreek-e-Insaf (PTI) government introduced a Rs11.97 per unit flat tariff regime for electricity consumers of domestic, commercial, and industrial sectors using Time of Day (ToD) metres from November 1, 2019 through February 28, 2020.
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The PTI government announced a significant electricity tariff relief package for general, small and medium enterprises (SMEs) to encourage increased power consumption and manufacturing last year. According to government claims, the programme has significantly increased the nation’s electricity consumption over the course of three years.
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