In a bid to encourage excess power consumption during the winter season, the federal cabinet approved a seasonal electricity package for domestic and commercial consumers.
As per government claims, the package is for 3 years and it is going to considerably increase the electricity consumption in the country.
Last year, the PTI government had announced a major relief package on electricity tariffs for general, small and medium enterprises (SMEs) to encourage higher power consumption and manufacturing.
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Energy Minister Hammad Azhar reached out to his Twitter handle to make an announcement.
The cabinet has approved the seasonal electricity package. Any additional electricity consumed by domestic and commercial consumers during nov-feb period compared to same time previous year will have a discount of Rs 5 to 7 per each unit.
— Hammad Azhar (@Hammad_Azhar) October 5, 2021
Moreover, Finance Minister Spokesperson Muzzammil Aslam endorsed the new initiative, saying that it is an incentive to encourage marginal production.
Very interesting move. For industries- an incentive to encourage marginal production. For Households- to shift heating from gas to electricity. https://t.co/Sh51g3efyg
— Muzzammil Aslam (@MuzzammilAslam3) October 5, 2021
According to the energy minister, such incentives provide relief to both domestic and commercial consumers and absorb part of surplus capacity.
Many experts say that the new initiative has been taken to counter the problem of low power demand during off-peak months.
On the other hand, consumers usually face severe gas shortages due to the high demand for the commodity in the winter season.
As per details, the demand for electricity from November to February drops to less than 10,000 MW against the installed capacity of 33,000 MW, creating the issue of capacity payments to idle power plants.
The new seasonal electricity package will encourage domestic consumers to use more electricity instead of gas while commercial ones can continue with their required gas consumption.