Vulnerable consumers will get Rs148bn subsidy to protect them from hiked power base price

Govt to determine the list of beneficiaries within a day or two

ISLAMABAD (Web Desk) – Although the consumers are in shock after the National Electric Power Regulatory Authority (Nepra) went for a Rs4.96 per unit hike in power base price, there is a still ray of hope for at least some of them: the federal cabinet hasn’t approved the proposal which was sent to the Ministry of Energy for consideration and a substantial amount was budgeted for subsidies in the 2023-24 budget.

It means that the government can either completely reject the suggestion or trim the increase in base tariff – although the probability of these two options is almost zero, given the inflation and the resultant hike in cost of electricity generation.

Now that not going for change in the base price isn’t practically possible, the government would have to approve the increase – Rs4.96 or a figure that is less than that.

But Rs1.48 billion are part of the budget under the subsidies head. So the households consuming less electricity, especially those falling in the lifeline category, would get the subsidized power. But who will be on the final list isn’t clear yet, as consultations are going on to decide the matter.

The domestic consumers would be the ultimate beneficiaries but the decision on the consumption limit for this targeted subsidy is to be decided before weekend.

However, the final tariff for some categories of consumers – those with higher consumption – would witness additional hike so that the subsidy given to the vulnerable categories could be adjusted.

As far as the process is concerned, the government will first have to approve the increase in base price followed by determination of subsidized categories and sending a motion to the Nepra, which cannot reject the subsidy adjustment plan, to adjust the amount by finalising the tariff for all categories of consumers.