Govt to End 200-Unit Electricity Penalty, Plans Targeted Subsidy

The government plans to end the electricity billing rule that pushes consumers out of the protected category for six months if they use even one unit more than 200 units in a month, and to replace the blanket 200 units electricity subsidy with targeted relief for poor households.

Federal Minister for Power Awais Ahmad Khan Leghari told the Senate on Tuesday that work was being sped up to abolish the six-month penalty. He was responding to a calling attention notice moved by PML-N Senator Abid Sher Ali, who asked why a household using 201 units should face a much higher bill than one using 200. Updates on power sector policy are published by the Power Division.

How the 200 Units Electricity Rule Works Now

Households that use up to 200 units a month are treated as “protected” consumers and get a subsidised tariff, a subsidy of around Rs13 per unit. The minister said this amounts to about 65% of the cost for protected consumers.

If a protected household crosses 200 units in any month, it moves to a higher tariff and stays out of the protected category for the next six months, even if its usage drops again. This sudden jump in bills has been one of the most common public complaints about electricity tariffs.

Two Options Under Consideration

According to the minister, the government is weighing two changes:

• Raising the limit: lifting the protected threshold from 200 units to 250 units a month.
• Ending the six-month bar: letting consumers get the protected rate in any month in which they keep usage within 200 units, instead of losing it for half a year.

No final decision or start date has been announced yet.

Subsidy to Be Linked to Poverty, Not Units

Leghari said nearly 20 million consumers now use fewer than 200 units a month, and that giving the same discount to all of them was unfair. Many better-off households, including some that use 700 to 800 units, keep their grid usage under 200 units by installing solar panels and still claim the subsidy.

The government is working on a system under which only households below the poverty line and lower-income families would get the discounted rate.

How the 200 Units Electricity Change Affects You

• Families near the limit: If the six-month penalty ends, one high bill in summer would no longer mean six months of higher rates.
• Low-income households: A higher 250-unit limit would give more room before bills jump.
• Solar users and better-off homes: Under a poverty-based system, homes that stay under 200 units only because of solar panels could lose the subsidised rate.

Until the new rules are notified, the current 200 units electricity rule and six-month penalty remain in force, so consumers should keep an eye on their monthly usage.

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