A new electricity tariff is being prepared, and how many billion rupees of cross-subsidy will be withdrawn from electricity consumers
According to the special report, as approved by the International Monetary Fund (IMF), a new tariff has been prepared with a 25% reduction in cross-subsidies. Under this, electricity consumers using less than 400 units, including lifeline consumers, will have 222 billion rupees of cross-subsidy withdrawn. Senior officials from the Ministry of Finance will seek approval for the funds for the tariff rationalization plan prepared by the Power Division.
Under the new tariff design, if implemented, consumers using less than 400 units of electricity, to some extent, in industrial sectors, will receive a withdrawn cross-subsidy of 222 billion rupees. In return, the government will impose charges of 50 rupees per month to 450 rupees per month on consumers using up to 200 units of electricity, falling under the lifeline category. A fixed charge of 3,000 rupees per month will be imposed on single-phase consumers who use more than 700 units monthly, using time-of-use (TOU) meters or three-phase meters, to encourage them to shift to the lifeline category.
Farm consumers receiving a subsidy of 39.30 billion rupees will be discontinued, and after adding to their fixed charges and predicting variable tariffs, agricultural tariffs will be purchased at their service cost.
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