Federal Minister for Power Division Awais Leghari has stated that the government is actively working to abolish the practice of charging electricity consumers higher rates for six months if their monthly consumption exceeds the 200-unit threshold by even a single unit. Responding to a calling-attention notice in the Senate, Leghari noted that the government is considering raising the existing threshold from 200 to 250 units to provide relief to the common man.
Pakistan Muslim League-Nawaz (PML-N) Senator Abid Sher Ali had drawn the government's attention to the significant financial burden imposed by power distribution companies. He questioned the fairness of charging a consumer using 201 units at the rate applicable to the 400-unit slab, arguing that the current system unfairly penalizes low-income households for minor fluctuations in usage.
Leghari stated that the number of consumers using fewer than 200 units has reached approximately 20 million. However, he argued that extending blanket discounts is not fiscally feasible, as many households have installed solar power systems, thereby reducing their reliance on the national grid and shifting the burden onto the remaining consumer base.
He added that the government would instead focus its relief efforts on consumers living below the poverty line. By targeting subsidies, the Power Division aims to ensure that the most vulnerable segments of society receive protection from rising energy costs while maintaining the financial viability of the power sector.
Separately, while addressing the National Energy Summit 2026 in Islamabad, Leghari outlined broader power sector reforms, announcing the formal introduction of a competitive electricity market. He confirmed that the government would no longer purchase additional electricity, marking a shift toward a market-driven model.
Under these new reforms, consumers with a capacity of up to one megawatt would be able to purchase power directly from suppliers. The first request for proposals (RFP) for this competitive market has already been issued, with 400 megawatts expected to be transferred to the transmission grid in the coming months.
Furthermore, the minister highlighted that the government has taken steps to reduce the cost of doing business in the energy sector. Specifically, wheeling charges have been significantly reduced from Rs28 to approximately Rs11-12 per unit, a move expected to encourage private sector participation.
The minister emphasized that these reforms are essential for the long-term sustainability of Pakistan's energy infrastructure. By moving away from state-controlled purchasing and toward a competitive framework, the government hopes to stabilize prices and improve service delivery.
The Senate session concluded with a promise from the minister to keep the house updated on the progress of the threshold adjustment. Lawmakers welcomed the move, urging the ministry to expedite the implementation of the relief measures for the benefit of the public.
As the government moves forward with these structural changes, the focus remains on balancing the fiscal deficit with the need to provide affordable electricity to the citizens of Pakistan.