Fuel price adjustments to bring relief for electricity consumers in September bills

As the inflation-weary masses continue to face the brunt of soaring electricity bills, the Power Division has said that consumers will be able to benefit from a relief of over Rs2 per unit in electricity bills for September courtesy of fuel adjustments.

Electricity prices, as per the Power Division's statement issued on Wednesday, fell by Rs2.93 per unit due to fuel price adjustments in the bills for the ongoing month; whereas, there was an increase of Rs1.74 per unit under quarterly adjustments.

Combining both the adjustments, agricultural and domestic consumers using up to 300 units will get relief of Rs2.19 per unit in their September bills, while Rs2.65 per unit (tax inclusive) will be provided to other consumers, it added. 

The development comes as Prime Minister Shehbaz Sharif-led coalition government has been under the spotlight over sky-high electricity tariffs which have further burdened the inflation-weary masses.

Owing to the flak received regarding the independent power producers (IPPs) the government, the government is renegotiating contracts with independent power producers (IPPs) to rein in "unsustainable" electricity tariffs — the highest in the region.

Rising power tariffs have stirred social unrest and shuttered industries in the $350 billion economy, which has contracted twice in recent years as inflation hit record highs.

"The existing price structure of power in this country is not sustainable," Awais Leghari, the federal minister heading the Power Division, told Reuters in an interview last week.

The Centre has time again reiterated its resolve to address the power issues which also include electricity theft, line losses etc.

In July, PM Shehbaz announced a Rs50 billion package for electricity consumers, saying the tariffs would not be increasing for protected customers consuming up to 200 units for a period of three months i.e., July, August and September.

The package came after the government — in its bid to secure a fresh bailout programme from the International Monetary Fund (IMF) — increased the applicable end-power tariff of protected consumers by up to 51% and unprotected consumers by up to 43%, which was earlier slated to take effect from July 1, 2024, before the PM's announcement of power subsidy, The News had reported.