LAHORE: A day after the Punjab government announced immediate relief for electricity consumers using up to 500 units for the months of August and September, the provincial government has decided to make advance payments to five electricity distribution companies (DISCOs) immediately.
A spokesperson for the Punjab government said that to facilitate this, the provincial government has sought detailed financial estimates from these companies by August 19 regarding the payment of the subsidy immediately.
The spokesperson said that on the instructions of Punjab Chief Minister Maryam Nawaz Sharif, official letters have been sent to the five electricity distribution companies: Lahore Electric Supply Company, Faisalabad Electric Supply Company, Multan Electric Power Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company, seeksing financial details to make payments against the subsidy.
These companies have been directed to calculate and report the total financial costs after the Rs14 per unit subsidy. The Punjab government plans to offset the difference between the actual cost of electricity and the reduced rates for citizens using between 201 and 500 units. The provincial government will cover this difference as part of its relief package.
However, this relief will not be extended to consumers using up to 200 units per month, as their electricity tariffs were not increased and they are in the category of protected consumers.
The subsidy will specifically target those consuming between 201 and 500 units per month, and it will be reflected in the electricity bills for August and September 2024.
This initiative follows an announcement made a day ago by former prime minister and PML-N President Nawaz Sharif and Maryam Nawaz, who declared a Rs14 per unit reduction in electricity rates for consumers using up to 500 units in Punjab, and later it was extended to Islamabad. The provincial government will bear the financial burden of this subsidy.