Electricity Tariffs Explained

Check out a brief overview of electricity tariffs in Pakistan. For a more detailed explanation, read below.

These tariffs are given on the K-Electric website, dated 14th July 2015. The residential, commercial, and industrial tariffs are more or less standard across Pakistan, although the amount of subsidy Government of Pakistan pays to the distributors varies, to assure a uniform rate for the entire population.

Let's start off with the Residential electricity rates, as shown below. There are no fixed charges for the consumer in this category. However, they will be billed a minimum of Rs. 75 for single phase connections and Rs. 150 for three phase connections. The electricity bill will be based on variable charges, i.e the amount of electricity you consume. The main thing you will note is that the more electricity you use, the more you will pay per unit of electricity (kWh). An additional 17% GST will be charged on the final bill.

residential electricity rates in Pakistan

For instance, in Tier (i),  lifeline consumers (the poorer members of our society), will pay just Rs. 2 per kWh (plus 17% GST), as long as they consume less than 50 kWh every month. Is that really enough for them? Well, it will allow them to run several energy saver bulbs, a ceiling fan, and either a small fridge or a TV. That is enough to give entertainment and cooling comfort at night after a long hard day. And it is enough to provide light at night so that the lifeline consumers can work to supplement their income, and so that their children can study if they are lucky enough to go to school.

If lifeline consumers use more than 50 units, but less than 100 units, they will be charged at Rs. 5.79/kWh (plus tax) for every unit they consume.

Tier (iii) tariff is for  those consumers using between 101-200 units of electricity per month. These consumers will be charged at Rs. 5.79/kWh for the first 100 units, and then at Rs. 8.11/kWh for the next 100 units. 

For residential consumers using between 201-300 kWh per month, they will be charged at Tier (iii) for the first 200 units, and at Tier (iv) level, i.e. Rs. 10.2/kWh (plus tax) for the remaining units of electricity. Most middle class households, or those without air conditioners, will fall in this category.  If you do not use an air conditioner or heavy machinery in your home, and your electricity bill is coming in Tier (v) or (vi), then there is something really wrong. Most likely you are using inefficient lighting and appliances, or someone is stealing electricity from you.

If you consume between 301-700 kWh/month, then you will be charged Rs. 10.20/kWh (plus tax) for the first 300 units and then at Tier (v) tariffs, i.e. Rs. 16.00/kWh (plus tax) for the next 400 units. If you run 1-3 tons of AC in your home on a regular basis, your monthly bill will fall somewhere in this range.

If your household electricity consumption is over 700 kWh per month, then you will be charged Rs. 16.00/ kWh, or  ~ Rs.19/kWh including tax, for the first 700 units, and then at Tier (vi) level, or Rs. 18.00/kWh (plus tax), for any further consumption.

Right now, Category A-1(b), for loads over 5kW, allowing for billing at peak and off-peak rates, is not really applied across Pakistan for residential consumers. So most consumers are billed according to A-1 (a), the system explained above, even if the sanctioned load of their residential connection is over 5kW.

commercial electricity tariffs in Pakistan

Commercial electricity rates are simpler to understand. First of all, your monthly bill will be a minimum of Rs. 175 for a single phase connection and Rs. 350 for a three phase connection. 

For sanctioned loads less than 5 kW, there are no fixed charges. Commercial consumers falling in this category are charged according to the amount of electricity they consume every month at a rate of Rs. 18.00/kWh plus tax. 

For instance, if you have a three phase connection and your shop consumed 100 kWh of electricity in the month, your bill will be Rs. 1800 (variable charges) plus tax.

However, if your sanctioned load is over 5KW, your monthly bill will include fixed charges and variable charges. The fixed charge is at a rate of Rs. 400/kW of your sanctioned load. If your sanctioned load is 10kW, you will be charged a fixed Rs. 4000 every month even if you do not consume a single kWh of electricity.

In addition to the fixed charge, you will also be charged for every unit of electricity that your office or shop consumes, at a rate of Rs. 16.00/kWh.

For instance, if your sanctioned load is 10 kW, and you consumed 100 kWh of electricity over your three phase connection, your bill will be Rs. 4000 (fixed charges) plus Rs. 1600 (variable charges) plus tax.

For businesses equipped with smart meters and being billed by the "Time of Use' model, they will pay a monthly fixed charge of Rs. 400/kW of sanctioned load. In addition, their variable charges rate will depend on the time the electrcity was consumed. Peak hours timinigs are from 5pm to 9pm from Dec-Feb, 6pm-10pm from Mar-May, 7pm-11pm from Jun-Aug, and 6pm-10pm from Sept-Nov. All other times are off-peak. For electricity consumed during peak hours, the rate will be Rs. 18.00/kWh, while off-peak consumption wll be billed at Rs. 12.50/kWh. Plus tax, which goes without saying. At the moment, K-Electric has not implented time of use charges, while most other distribution companies across the country have.

industrial electricity tariffs in Pakistan

Industrial Supply Tariffs are billed in a similar way to commerical electricity tariffs. Your monthly bill will be a minimum of Rs. 350 if you are a B1 consumer, Rs. 2000 if you are B2(a) or B2(b), Rs. 50,000 if you are B3(a) or B3(b), Rs. 500,000 if you are B4, and Rs. 1,000,000 if you are a B5 consumer.

Connections with a sanctioned load less than 5kW will pay only variable charges according to the electricity they have consumed at a rate of Rs. 14.50/kWh (plus tax). 

However, for sanctioned loads above 5kW, or connection lines with a voltage above 400V, you will pay a monthly fixed charge according to your connection type in addition to the variable charges for the amount of electricity your factory has consumed. For instance, a B3(a) consumer with a sanctioned load of 1000kW and a monthly usage of 10000 kWh will pay Rs. 380000 per month in fixed charges at a rate of Rs. 380/kW. In addition, this factory will also pay Rs. 161400 in variable charges for the electricity consumed at a rate of Rs. 16.14/kWh. In addition, there will be a 17% tax charged on the entire bill. 

For those factories equipped with smart meters and billed according to "Time of Use", the monthly fixed charge will be the same. However, the variable charges will depend on the time the electricity is consumed. Electricity usage during peak hours is billed at Rs. 18.00/kWh, while that during off-peak hours is at Rs. 12.29/kWh for B2(b) consumers, Rs. 12.20/kWh for B3(b) consumers, Rs. 12.10/kWh for B4(b) consumers, and Rs. 12.00/kWh for B5 consumers.