Electricity Subsidy to Be Linked to Household Income: Current Subsidy Slabs Explained
The government is preparing to connect electricity consumers with a new socio-economic registry, so subsidies can be matched to household income rather than consumption category alone.
The government is preparing to link electricity subsidies to household income through a new socio-economic registry. See the current subsidy slabs for lifeline, protected and non-protected consumers.
Pakistan is preparing a mechanism to link domestic electricity subsidies to household income, using a new socio-economic registry. Currently, domestic consumers in various categories receive subsidies on electricity consumption of up to 400 units, depending on how many units they use and how they are classified. Under the proposed system, the availability of subsidies would be tied more closely to household income than to existing consumption categories alone, which could change the subsidy amounts available to households. The plan is still being prepared.
Current Subsidy Per Unit
According to the details in a document, subsidies currently vary by consumption level and consumer classification:
Consumer category | Monthly consumption | Subsidy per unit |
|---|---|---|
Lifeline | Up to 50 units | Rs2.83 |
Lifeline | 51 to 100 units | Rs3.76 |
Protected | 1 to 100 units | Rs18 |
Protected | 100 to 200 units | Rs18.42 |
Non-protected | Up to 100 units | Rs7.83 |
Non-protected | 101 to 200 units | Rs4.85 |
All consumers | 201 to 300 units | Rs3.94 |
All consumers | Up to 400 units | Rs0.65 (65 paisas) |
What the Change Means
Linking subsidies to income aims to match assistance with household need rather than relying only on how many units a household uses. Because the proposal would change how subsidy amounts are determined, the effect on each household would depend on its income level, consumption and classification. Preparations are underway to connect electricity consumers with the new registry.
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