The federal government is considering eliminating the “protected” consumer category for users of the national grid. According to reports, Islamabad plans to replace the current financial relief provided to consumers using up to 200 units of electricity with a direct subsidy.

 

For context, a "protected consumer" in the domestic power sector refers to an individual who uses 200 units of electricity or less per month through a single-phase meter. To qualify for this status, the consumer must consistently consume a maximum of 200 units per month for at least six consecutive months.

 

During the Public Accounts Committee (PAC) meeting, led by Chairman Junaid Akbar Khan, Power Division Secretary Dr. Fakhar Alam Irfan reportedly stated that the federal government plans to end the protected consumer category by 2027.

 

Taking notice of the sharp hike in electricity tariffs for consumers using more than 200 units of power, the PAC reportedly directed the Power Division to find a solution for the hefty bills that continue for six months even if users cross the 200-unit threshold by just a single unit. 

 

The reason behind this request was that exceeding the 200-unit threshold even once results in the loss of protected consumer status and consumers having to maintain monthly consumption below this limit for six consecutive months to regain it.

 

According to the Power Division Secretary, the number of protected consumers has increased by approximately 64 percent, rising from 11 million to 18 million. Moreover, 58 percent of power users consume only up to 200 units of power, suggesting that the magnitude of financial resources to protect all of these consumers could be quite large. 

 

Reports indicate that the government might end the protected category, dispersing aid to power consumers by granting direct subsidies to deserving groups. These decisions are reportedly going to be based on data from Benazir Income Support Programme (BISP).

 

While various deserving power consumers are detrimentally impacted by minorly exceeding the 200 unit threshold, it merits a mention that the higher tariff slab rate has been circumvented by various individuals across Pakistan. This has been possible by the installation of multiple single-phase meters at residences.

 

Netizens have questioned what actions the government plans to take about people with multiple single-phase meters who remain in the protected category by distributing their power consumption across various meters.