2m electricity consumers register for subsidy under QR code system

ISLAMABAD, Jun 03 (ABC): Around two million single-phase electricity consumers in Pakistan have registered under a QR code system launched to verify subsidy eligibility.

According to Ministry of Energy’s official documents available with Wealth Pakistan, the number of protected consumers has increased from 9.5 million in FY2022 to 21.5 million in 2026, while subsidized residential consumers now total 29.57 million, representing 86 percent of total residential users.

The annual subsidy for protected consumers rose from Rs199 billion in FY2022 to Rs423 billion in FY2025-26.

The document put the combined residential and agricultural subsidy at Rs527 billion, including Rs249 billion funded by the government and Rs278 billion provided through cross-subsidy from other consumers.

The ministry said the government was not withdrawing support for low-usage consumers, but wanted subsidized electricity to reach only eligible consumers. The eligibility criteria would be finalized through public consultations, while verified consumers would continue receiving the subsidy without interruption.

The ministry also cited measures that reduced power-sector costs, including Rs3.5 trillion in lifetime savings from renegotiations with Independent Power Producers (IPPs), Rs47 billion from the disposal of redundant government-owned generation companies’ machinery, Rs193 billion saved through reduction in distribution company (DISCO) losses in FY2024-25 compared with FY2023-24, and a Rs780 billion reduction in circular debt during FY2024-25.

On tariffs, the document said electricity rates declined across several consumer categories between March 2024 and May 2026.

The national average rate fell from Rs53.04 per unit to Rs42.26 per unit on an all-inclusive basis, showing a 20 percent reduction.

For protected consumers using up to 200 units, the all-inclusive rate declined from Rs24.07 to Rs16.56 per unit. Industrial tariffs fell from Rs62.99 to Rs42.40 per unit, commercial tariffs from Rs76.00 to Rs70.08 per unit, and agricultural tariffs from Rs47.56 to Rs40.82 per unit.

The document said clean energy accounted for 55 percent of the generation mix in 2025 and was targeted to reach 90 percent by 2035. The local fuel share was placed at 74 percent in 2025 and projected to increase to 96 percent by 2035, while the fuel import bill was projected to fall from $2.4 billion to $0.3 billion.