Government Proposes New Fixed Charges for Electricity Bills

government proposes new fixed charges for electricity bills

The regulatory authority has proposed fixed monthly charges of Rs200 to Rs1,000 for electricity bills. This proposal has been sent to the government, which will decide whether to implement these charges.

Starting July 1, 2024, domestic users consuming 301-400 units of electricity per month will pay Rs200. Those using 401-500 units will pay Rs400, while those consuming 501-600 units will pay Rs600. Households using 601-700 units will be charged Rs800, and those using more than 700 units will pay Rs1,000 per month.

Consumers with a ToU (time of use) meter will also pay Rs1,000 per month. Commercial users with a load less than 5kW will pay Rs1,000 monthly. Those with a load of 5kW or more will see their fixed charges increase from Rs500 to Rs2,000, a 300% rise.

Currently, the cost of electricity is made up of 72% fixed charges and 28% variable charges.

Here is the detailed list of the proposed charges:

  • 301-400 units/month: Rs200/month
  • 401-500 units/month: Rs400/month
  • 501-600 units/month: Rs600/month
  • 601-700 units/month: Rs800/month
  • Above 700 units/month: Rs1,000/month

Recently, after the Budget 2024-25 announcement, the government increased the power tariff by Rs5.72 per unit. The National Electric Power Regulatory Authority (NEPRA) stated that the average electricity tariff will go up from Rs29.78 to Rs35.50 per unit.

My Opinion

Introducing fixed charges for electricity bills will add a significant financial burden on consumers, especially those already struggling with high inflation. While it may help in managing electricity costs and infrastructure, the timing and scale of these charges need careful consideration to avoid exacerbating the economic difficulties faced by many households and businesses.