ISLAMABAD: Pakistan’s government on Tuesday announced a historic change in electricity billing. Industrial consumers will get a Rs4.04 per unit cut in power rates. Meanwhile, residential customers will face fixed monthly charges based on their sanctioned load, regardless of usage. Power officials revealed fixed charges will range from Rs200 to Rs675 per kilowatt each month. For example, a 2kW home pays Rs400, while a 6kW home pays Rs4,050 monthly. Additional Secretary Mehfooz Bhatti explained this two-part tariff system aims to cover the Rs2.56 trillion annual fixed power capacity cost. This reform removes the Rs101 billion cross-subsidy burden from industries, allowing them to compete globally without extra charges. While industrial tariffs will drop to about 11.50 cents per unit from 13 cents, residential consumers will see their bills rise. Financial adviser Optimus Capital Management estimates a hike of 31% to 76% per unit for many residential users after adding fixed charges. No representatives spoke for the 28.5 million residential customers at the hearing, where power officials and regulators praised the changes as a "great move" and "first step in the right direction." The government expects the new fixed charges to boost revenue from Rs223 billion to Rs355 billion annually, helping stabilize the power sector. In summary, industries celebrate relief from cross-subsidy, but the average household will face a heavier electricity bill linked to their electrical capacity, signaling a new era in Pakistan's power pricing.