Govt to continue power subsidy for consumers using under 200 units: Leghari

Federal Minister for Power Owais Leghari has said that electricity subsidies will continue for eligible consumers using less than 200 units per month, while the government introduces a QR code-based system to verify and manage subsidy distribution more transparently.

Speaking at a press conference in Islamabad, the minister clarified that the government is not removing subsidies for protected consumers.

He said the number of electricity consumers receiving subsidies has now reached 21.5 million, and a comprehensive digital database is being developed using QR codes linked to consumer meters.

According to him, subsidy eligibility will be determined through verified consumer data, ensuring that only deserving households continue to benefit.

He added that many users who have installed large solar systems and reduced their consumption below 200 units are placing an additional financial burden on consumers who pay full tariffs.

Leghari stated that electricity subsidies have increased significantly, rising from Rs199 billion to Rs423 billion, while agriculture and household sectors together are receiving Rs527 billion in support.

He said over 2 million single-phase consumers have already completed registration under the updated system.

The minister also rejected claims that subsidies are being withdrawn, calling such reports misleading. He maintained that reforms in the power sector are aimed at improving efficiency and ensuring targeted relief.

Highlighting broader sector reforms, he said renegotiation of Independent Power Producer (IPP) agreements has resulted in savings of Rs3,500 billion, while reduced losses in distribution companies have saved Rs193 billion.

He added that circular debt decreased by Rs780 billion in FY2024–25.

Leghari said these reforms have contributed to lower electricity costs, with tariff reductions recorded across multiple categories since March 2024. He stated that protected consumers have seen a 31% reduction in rates, domestic consumers 16%, industrial users 33%, commercial users 8%, agricultural users 14%, and consumers in Azad Kashmir up to 45%.

On renewable energy, the minister said the government is not discouraging solar power but is making the system more transparent.

He clarified that net billing policies are being revised but not abolished, and most household solar users will not be affected.

He further noted that small solar projects up to 25 kW have been exempted from licensing requirements, and regulatory adjustments have been approved to facilitate adoption of renewable energy.