Lifeline consumers'' quota raised by 10 0percent: power rate cut notified

The government has extended the lifeline electricity consumers'' quota from 50 units per month to 100 units per month, effective May 2012. According to a notification issued by the Ministry of Water and Power on Thursday, the government has reduced the electricity rates for lifeline consumers by Rs 2.67 per unit.
According to officials, nearly 4.7 million power consumers are using up to 100 units of electricity per month and about 7 million are consuming 50 units per month. After the decision, power consumers falling in the lifeline category will be 11.7 million. Officials told Business Recorder that the government will have to pay an additional subsidy of about Rs 65 million on the provision of cheap electricity to consumers.
Sources in the Ministry of Water and Power said in fact the government has changed the definition of lifeline power consumers and after the new definition; the lifeline consumers would be given a relief of Rs 2.67 per unit. Before this decision, Rs 1.87 per unit was being charged from the consumers using 50 units and Rs 4.75 from consumers using 100 units.
The decision has been taken in accordance with the decisions at the energy conference held in Lahore.
Sources added that the reduction will only facilitate the domestic consumers and the new tariff will be implemented from the next month''s electricity bills.
"In order to provide maximum relief to domestic consumers and following the directions of the Prime Minister of Pakistan, the lowest slab for lifeline consumers has been increased from 50 to 100 units. The new slabs will be introduced in next month electricity bills to be issued by Discos," said a press release issued by the Ministry of Water and Power.
It added only the lifeline consumers using 1 to 50 units were exempted from tariff increase and imposition of General Sales Tax. Now, the domestic consumers using up to 100 units will be treated as lifeline consumers and will enjoy the benefit of exemption from tax and tariff increase.
The tariff rate of consumers under the new slab will automatically reduce and they will get good benefit.