New Electricity Fixed Charges: 28.5 Million Pakistani Households to Face Higher Bills for Industrial Relief. -

In a significant structural overhaul of the power sector, the Power Division has officially notified the introduction of mandatory fixed monthly charges for domestic electricity consumers, effective February 2026. This policy shift aims to recover an estimated Rs 101 billion annually to align the grid’s fixed costs with its revenue collection.

Impact on Domestic Consumers

The new fixed charges apply regardless of electricity usage and are categorized by consumption slabs:

Low Usage Households: Approximately 9.9 million consumers using less than 200 units (non-protected) will now face a Rs 200 monthly fixed charge.
Protected Consumers: Over 6.1 million protected users (consuming up to 200 units) will be required to pay Rs 300 per month.
Non-Protected Slabs:
- 101–200 units: Rs 300.
- 201–300 units: Rs 350.
- 301–400 units: Rs 400.
- 401–500 units: Rs 500.
Heavy Users: Consumers using over 500 units or on Time-of-Use (ToU) connections will face a charge of Rs 675 per kW.
Exemptions: Only lifeline users (strictly consuming up to 100 units) remain exempt from these new fixed charges.

Industrial Relief and Economic Goals

The revenue generated from these domestic charges is being utilized to fund a major relief package for the industrial sector:

Tariff Reduction: Industrial electricity rates have been slashed by an average of Rs 4.04 to Rs 4.58 per kWh across various categories to boost global competitiveness and exports.
Rationalization: Officials state this “two-part tariff” model (fixed + variable) is essential to address the Rs 629 billion cross-subsidy burden and prevent “grid defection” caused by the rapid adoption of rooftop solar.