Electricity Subsidy Ends in Pakistan for 200 Units – July 2025 Update

📰 Overview

In a move that has sparked widespread frustration, the government of Pakistan has officially ended the electricity relief for residential consumers using up to 200 units per month. This change means millions of households who were previously classified as “protected consumers” will now pay full market rates — causing a 2x to 3x increase in electricity bills.

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💡 What Was the 200-Unit Relief?

The "protected consumer" category was introduced to shield low-income households from full tariff hikes. If you used 200 units or fewer, you benefited from subsidized rates, often paying between Rs. 7 to Rs. 14 per unit.

But now, if you use even 201 units, your entire slab resets, and your bill will be calculated at higher commercial rates—up to Rs. 29 per unit.

And worst of all? This higher rate applies for the next 6 months, even if your usage drops again below 200 units.

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What’s Changed – Key Breakdown (Line by Line)

Old Status: Protected consumer if monthly usage is up to 200 units

New Rule: Even 201 units now puts you in the non-protected category

Old Rate: Rs. 7 to Rs. 14 per unit

New Rate: Rs. 21 to Rs. 29 per unit

Old Bill (200 units): Rs. 3,800 – Rs. 5,000

New Bill (200+ units): Rs. 7,500 – Rs. 10,000

Old System: No penalty for minor unit overuse

New System: Slab locked for 6 months even if usage drops

Old Relief Status: Continued if usage stayed near 200 units

Now: One-time excess triggers 6-month penalty

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😰 Real-World Reactions

Thousands of social media posts reveal the public's shock:

> “We used 198 units in May and paid Rs. 3,800. In June, we crossed 200 by 1 unit — the bill shot to Rs. 9,200. No warning, no leniency.”

— Waleed S., Rawalpindi

> “What’s the logic? If someone earns Rs. 30,000 and pays Rs. 12,000 in electricity, how can they survive?”

— Farzana B., Karachi

This system is especially harsh for families in hot areas who use fans or small ACs. A single mistake or hot night can lead to months of inflated bills.

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🔍 Why Did the Government Remove It?

The decision is reportedly tied to the IMF loan agreement, where Pakistan committed to ending power subsidies and moving toward “full cost recovery” pricing:

Circular debt in the power sector exceeds Rs. 2.6 trillion

NEPRA and the Ministry of Energy claim subsidies were unsustainable

Govt. aims to save Rs. 260 billion annually by ending relief categories

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🏠 Who is Most Affected?

Low-income families using 195–250 units monthly

Middle-class households using fans, fridges, and basic electronics

Retired and elderly people with fixed incomes

Renters living in shared flats or single-meter buildings

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🗣 Public Response & Protests

Opposition parties have called the decision “cruel and unjust”

Civil rights groups demand a grace margin of 5–10 units to avoid slab jumps

Petitions have been filed in Lahore and Islamabad high courts

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🛠 Suggested Solutions (Policy Experts)

1. Introduce Warning Alerts: Utility companies should alert users when they reach 180 units.

2. Flexible Slab Recovery: Use a rolling average, not one-month slab reset.

3. Reverse 6-Month Lock: Allow consumers to return to protected status after a low-usage month.

4. Tiered Subsidies: Apply partial subsidies to 201–250 units, not a full cutoff.

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📝 Conclusion

The end of the 200-unit electricity relief has brought real economic pain to millions of Pakistani households. While the move may help stabilize the power sector financially, the lack of grace, warnings, and gradual transition has made the impact far worse than necessary.

The government now faces growing pressure to rethink slab rules and protect vulnerable citizens from harsh summer bills.