ISLAMABAD: The details of the Prime Minister Shehbaz Sharif’s electricity relief package were disclosed on Friday during a hearing by the National Electric Power Regulatory Authority (Nepra). 

The relief package, announced by the premier a day earlier, includes monthly and quarterly adjustments, as well as relief on petroleum levy.

As per the details that surfaced today, a relief of Rs1.71 per unit will be provided on account of petroleum levy, while a relief of Rs1.90 per unit will be given through quarterly adjustments.

Meanwhile, a relief of Rs1.36 per unit will be provided through monthly fuel price adjustments, out of it 46 paisa will be for one month and 90 paisa for three months. While, an additional relief of over Re1 per unit is expected from the third quarterly adjustment.

Hence, the total relief will amount to around Rs6 per unit. Whereas, the total relief for consumers, after inclusion of tax, will be Rs7.41 per unit.

This information was made public during the Nepra hearing, outlining the various components of the government’s effort to provide relief to electricity consumers.

On the other hand, Nepra Chairman Waseem Mukhtar said an additional relief of Re0.90 per unit will be provided to the electricity consumers for three months — April, May and June — amounting to a total relief of Rs23 billion to the consumers during this period.

The Nepra chief said the authority had announced its decision regarding this relief. However, he said, the Lifeline and Protected domestic consumers would not be able to enjoy this relief. 

PM Shehbaz had announced a significant reduction in the electricity prices of up to Rs7.69 per unit for the consumers on Thursday, pledging to provide further relief in near future through structural reforms in the power sector.

The prime minister, addressing a ceremony to unveil the package, said that the average per unit price had been brought down by Rs7.15 and Rs7.69 for the domestic consumers and industrial sector, respectively.

“In June 2024, the per unit price for industrial sector was Rs58.5 which was first reduced by Rs10.3 and further by Rs7.69,” he added.

The prime minister pointed out that the government was taking structural reforms especially in power sector to ensure further relief for the consumers and overall development of the country.

“This reduction will help industrialists to produce cheaper and more competitive products,” he added.

Highlighting the structural reforms to be taken in power sector, the prime minister said the government will ensure halting power theft which was around Rs600 billion per year. Similarly, he said by establishing open market, the electricity tariffs will be further decreased.

He said there was no option but to privatise or commercialise Power Distribution Companies (DISCOs) to reduce the burden of line losses and power theft on the national exchequer.