The monthly household consumption payable by the government is capped at 15 cubic metres (15,000 litres) of water and 300 kWh of electricity.

The government on Monday said it would also clear water and electricity bills for residents with outstanding arrears.

It also announced a cut in transport taxes that could lower transport costs, which hiked last month with a rise in fuel prices.

Chad's junta leader and interim President Mahamat Déby sanctioned the policy "to assist households", a joint statement by the presidency and finance minister said.

Some Chadians perceive the move as Mr Déby's attempt to endear to voters.

He will be vying for the presidency when Chad holds elections between May and June.

Some residents also say that the move is meaningless as several parts in the capital, N'Djamena, have faced a power outage for the past two weeks.

But some Chadians have welcomed the measure as a much-needed relief to the ongoing cost-of-living crisis.