Govt plans income-based electricity and gas tariff system

ISLAMABAD: The federal government has started working on a major reform in Pakistan’s electricity and gas tariff system.

Under the new plan, the slab system will be based on household income instead of electricity or gas usage. This means subsidies will be given according to how much a family earns. The goal is to make the system fairer, so low-income households get more relief while higher-income households pay according to their financial capacity.

These reforms are being prepared in line with agreements made with the International Monetary Fund (IMF).

Current Electricity Tariff Slabs 2026

At present, electricity prices are charged under different slabs.

For protected domestic consumers:

• Those using 1 to 100 units per month are charged Rs10.54 per unit.

• Consumers using 101 to 200 units pay Rs13.01 per unit.

For non-protected domestic consumers:

• Up to 100 units are charged at Rs22.44 per unit.

• From 101 to 200 units, the rate is Rs28.91 per unit.

According to the National Electric Power Regulatory Authority (NEPRA), consumers using 201 to 300 units pay Rs33.10 per unit.

For higher usage:

• 301 to 400 units: Rs37.99 per unit

• 401 to 500 units: Rs40.22 per unit

• 501 to 600 units: Rs41.62 per unit

• 601 to 700 units: Rs42.76 per unit

Households using more than 700 units per month are charged Rs47.69 per unit.

The government is expected to announce further details once the new income-based system is finalized.