Government has agreed to a reduction in utility tariffs following a crunch meeting with organised labour Wednesday.

Per a memo after the meeting, electricity tariffs will be reduced by 45% and 50% for lifeline consumers and vulnerable groups.

The development comes in the wake of the impasse between government and workers over the recently introduced Energy Sector Levies.

Labour had insisted that government withdraws the levies which it has labelled “insensitive”. Government however stood its grounds saying any attempt to withdraw the taxes will cripple the already struggling energy sector, a move which prompted a nationwide demonstration by workers last week.

It nonetheless offered to review utility tariffs to ease the burden on workers.