Taking U-turn, Punjab govt ends subsidy to Islamabad power users

ISLAMABAD   -  Taking U-Turn on its earlier decision of providing relief of Rs 14 per unit, the government of Punjab has discontinued the subsidy to electricity consumers of Islamabad Capital Territory (ICT).

The Punjab government has backtracked from its earlier commitment of providing relief of Rs 14 per unit to the electricity consumers of Punjab and Islamabad Capital Territory for the months of August and September, and issued the instructions of discontinuing the relief for the consumers of ICT for the month of September, official source told The Nation.

Following the instructions of the government of Punjab, Chief Executive Officer of Islamabad Electric Supply Company (IESCO) has announced the discontinuation of the Chief Minister Punjab relief on electricity bills in Islamabad Capital Territory, the source added.

“As per telephonic discussion dated 03-09-24, instructions regarding discontinuation of the CM Punjab relief @ Rs 14 per unit for domestic consumers having consumption range from 201-500 units per month is being discontinued for ICT consumers for billing month of September 2024,” said CEO IESCO in a letter to General Manager (R&CO) Power Planning and Monitoring Company (PPMC).

“Under this context, necessary instructions are being issued to the Power Information Technology Company (PITC) to make changes in the billing software, so that instructions received from Secretary (Energy) Government of Punjab may be implemented in true letter & spirit and the CM Punjab relief may be discontinued in the ICT area in the billing month of September 2024,” the letter further maintained.

It is worth to note here that last month the government of Punjab had decided that beside the provincial electricity consumers, targeted subsidy will also be provided to the residents of Islamabad Capital Territory. The provincial government had announced that targeted subsidy of Rs 14 per unit will be provided to the consumers on the consumption from 201 to 500 units.

In separate letters written to the Chief Executive Officers of five Distribution companies including, Lahore Electric Supply Company Limited (LESCO), Gujranwala Electric Power Company, Multan Electric Power Company, Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO), the government of Punjab had requested for the provision of the details of the estimated cost of the targeted subsidy of Rs 14 per unit during two months of August and September.

“Considering escalating electricity bills coupled with high inflation, the Government of Punjab has undertaken a significant and unprecedented initiative to alleviate the financial strain on the middle-class households. As part of this initiative, the Government of Punjab has decided to provide a targeted relief of Rs. 14 per unit in the electricity bill (including taxes & duties) for consumers having monthly consumption from 201 to 500 units. This relief will be applicable for the billing months of August & September 2024, the letter of the Punjab Government further said.

However, after provision of the subsidy for the month of August, the provincial government withdrew its earlier decision and discontinued the subsidy for the consumers of ICT for the month of September.

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