ECC raises power tariff for household consumers, relief to farmers

The Economic Coordination Committee of the cabinet has approved a hike in power tariff for households consuming over 300 units per month, but has decided to give massive relief in electricity prices for the country’s agricultural sector.

Sources said that the committee decided that electricity prices would not be raised for domestic consumers using 300 units or less every month. However, households that consume more than 300 units per month will witness a rise in electricity prices of roughly 10 percent.

The decision was taken by the committee headed by Finance Minister Asad Umar today.

The rise in power tariff is less than anticipated and has been approved keeping in mind the recovery of dues and the need to address the issue of circular debt, sources privy to the meeting quoted Finance Minister Asad Umar as saying.

Meanwhile, sources said the committee also decided that it would provide relief in electricity prices for the agricultural sector, slashing rates by almost 48 percent from Rs10.5 to Rs5.5.

The committee discussed matters pertaining to the power sector and the economic indicators.

The government has not released an official statement regarding the changes in power tariff structure, but Finance Minister Asad Umar is likely to announce the measures soon.

During the last meeting on October 22, ECC members had deferred the decision on an increase in the power tariff and decided to meet today to consider it.