On Tuesday, the Economic Coordination Committee (ECC) of the Cabinet approved a three-month winter electricity relief package, which was announced earlier this month by Prime Minister Shehbaz Sharif. The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, covered several important issues and resulted in key decisions, according to a statement from the Finance Division.
The ECC reviewed a proposal from the Ministry of Energy (Power Division) aimed at managing winter electricity demand across various sectors. The initiative focuses on optimizing electricity generation and reducing gas demand by shifting some demand to electricity. It also aims to benefit industrial, domestic, and commercial consumers.
Under the approved plan, eligible consumers will be charged a flat rate of Rs26.07 per unit on any consumption above their benchmark usage, which will apply to a three-month billing period from December 2024 to February 2025. The benchmark will be based on either the highest consumption in the same months of the previous fiscal year or the average usage over the past three years.
The ECC endorsed the initiative, calling it a timely and relevant measure given the recent rise in electricity tariffs and the decline in demand from various consumer groups. The relief package is expected to help ease the burden on consumers during the winter months, which typically see lower demand for electricity.
Prime Minister Shehbaz Sharif had earlier outlined the package, which will allow domestic consumers to save between 30% to 50% on their electricity bills, with savings ranging from Rs11.42 to Rs26 per unit. Industrial users will benefit from a reduction of Rs5.72 to Rs15.05 per unit (18% to 37%), while commercial consumers will save between Rs13.46 and Rs22.71 per unit.
In addition to the electricity relief package, the ECC also approved a proposal from the National Disaster Management Authority (NDMA) to transfer Rs3.14 billion from the Emergency Relief Cell (ERC) into the NDMA Fund. This money, originally collected through public donations, will be used for rescue and relief operations, both domestically and abroad, in line with the NDMA’s mandate.
The ECC’s approval of both the electricity relief package and the NDMA’s funding proposal is seen as a step toward addressing pressing economic and humanitarian needs during the winter months.
