Islamabad, November 19, 2024 – The Economic Coordination Committee (ECC) of the Cabinet has approved a winter package designed to increase electricity demand while reducing the country’s reliance on natural gas during the colder months.
The decision was made during a meeting chaired by Finance Minister Muhammad Aurangzeb in Islamabad. The package targets industrial, domestic, commercial, and general service consumers of distribution companies (DISCOs) and K-Electric, encouraging a shift toward electricity usage by offering financial incentives.
Key Features of the Winter Package
Under the initiative, a discounted tariff of PKR 26.07 per unit will be applied to incremental electricity consumption above a benchmark set for the corresponding months of the previous year. The package is scheduled to remain in effect for three billing cycles from December 2024 to February 2025.
The initiative is expected to optimize the utilization of electricity generation capacity, which often remains underutilized during the winter season. By incentivizing greater electricity consumption, the government aims to reduce the demand for natural gas, which faces heightened pressure in winter due to domestic and industrial heating needs.
Strategic Shift to Electricity
Officials from the Power Division highlighted that the package aligns with the government’s broader energy strategy of diversifying energy use and addressing seasonal imbalances in resource demand. “Encouraging a shift toward electricity is a sustainable solution for managing gas shortages during winter,” a senior official stated.
The initiative also seeks to stabilize power generation systems by maintaining a consistent demand, which benefits overall grid efficiency and reduces the financial losses incurred by underutilized power plants.
Potential Impact
Analysts believe the package could positively impact industries and households by offering cost-effective energy solutions during the winter season. The reduced gas demand could also help alleviate the recurring issue of gas shortages that disrupt industrial operations and domestic supply.
However, concerns remain over the affordability of electricity for low-income households, even with discounted tariffs. Policymakers have been urged to ensure that all segments of society benefit equitably from such initiatives.
The ECC’s winter demand initiative represents a proactive approach to addressing Pakistan’s seasonal energy challenges. By promoting electricity usage, the government aims to achieve a dual objective: optimizing electricity generation and mitigating the strain on natural gas reserves. The next three months will test the effectiveness of this measure in balancing the country’s energy demands.
