The government has decided to continue charging a Rs3.23 per unit debt surcharge on electricity consumers for up to six years, as it notified a revised uniform national base tariff for the current year without any change, linking the withdrawal of the surcharge to the clearance of circular debt under a settlement plan aimed at eliminating liabilities within five to six years.
The Power Division said the surcharge would be withdrawn once the circular debt is cleared. A circular debt settlement plan has been launched, with the government targeting the elimination of outstanding liabilities within five to six years.
The division acknowledged that the expansion of off-grid solar usage has altered subsidy dynamics, noting that the number of protected consumers has doubled from 11 million in 2021 to 22 million due to hybrid consumption patterns.
It said this shift has increased fiscal pressure and raised the cross-subsidy burden on industrial and commercial users, affecting competitiveness.
Responding to concerns over high energy costs, which have been cited by the finance minister as a factor behind foreign firms exiting Pakistan and challenges faced by exporters, the Power Division said further options are being explored to reduce the cross-subsidy burden on industry. These include subsidy reforms and debt refinancing, in addition to existing tariff reduction measures.