LAHORE (Daily Point) – The federal government has announced a major reduction in electricity prices for both residential and commercial consumers, effective from June 2024. The new prices, hailed by senior Pakistan Muslim League-N (PML-N) leader Khawaja Saad Rafique, reflect a substantial relief for the public, following months of rising energy costs.

According to a post shared by Rafique on his Facebook page, the new electricity rates are as follows:

Residential: 34.37 rupees per unit

Commercial: 42.40 rupees per unit

This reduction follows a pattern of price cuts over the past eight months. Previously, the rates stood at:

Residential: 45.05 rupees

Commercial: 48.19 rupees

The recent cuts have brought the residential tariff down by 7.41 rupees and the commercial tariff by 7.69 rupees, offering much-needed relief to citizens and businesses alike.

In a message of appreciation, Mr Saad lauded Mian Shehbaz Sharif and the dedicated task force, acknowledging their efforts in addressing one of the most pressing concerns for the public. “Well done, Mian Shehbaz Sharif and the task force. This reduction is a testament to your hard work,” he remarked in his post.

This announcement comes as a breath of fresh air for consumers who have long been grappling with rising electricity costs. It is expected to have a positive impact on both household budgets and the broader business environment, signaling a proactive step in the government’s energy policy.

Earlier, PM Shehbaz Sharif announced a reduction in electricity prices for domestic consumers by Rs7.41 per unit, as part of the government’s efforts to ease the financial burden on Pakistanis and strengthen the economy.

According to the media reports, the price cut was made following the government’s request to the National Electric Power Regulatory Authority (Nepra) for a reduction in tariffs, and was revealed during a special event attended by cabinet members and business leaders. Additionally, electricity rates for industrial units have been slashed by Rs7.59 per unit.

During his speech, PM Shehbaz stressed that a significant reduction in electricity prices is crucial for the country’s progress. “This is no ordinary achievement,” he said, praising the efforts of his government.

The Prime Minister also discussed revised agreements with Independent Power Producers (IPPs), pointing out that these changes had resulted in savings of Rs3,696 billion for the national exchequer. “This amount was meant to be paid to the IPPs,” he added.

Addressing the issue of circular debt, PM Shehbaz outlined plans to eliminate it within five years, provided there are changes in consumer behavior.

The price reductions are a major part of the government’s strategy to lower power tariffs, with earlier proposals suggesting cuts of Rs6 to Rs8 per unit. Prime Minister Shehbaz explained that the rate per unit, which stood at Rs58.35 in June 2024, has now been lowered to Rs48.19, marking a Rs10.3 per unit decrease. He expressed hope that these new reductions would benefit the people of Pakistan.

In his address, PM Shehbaz also highlighted the ongoing issue of electricity theft, which he said costs the country around Rs600 billion annually. He emphasized that these losses unfairly burden vulnerable groups, including the poor, widows, and orphans, and called for stricter measures to combat electricity theft.

The Prime Minister reiterated that these reforms were designed to offer much-needed relief to consumers and to improve Pakistan’s economic conditions amidst the rising electricity costs.