The National Electric Power Regulatory Authority (NEPRA) has questioned the Power Division on why industrial and agricultural stakeholders were not consulted before finalizing the proposed 3-year additional electricity tariff of PKR 22.98 per unit.
The tariff package, prepared on the basis of a 25% overall increase, has been criticized by industry representatives as discriminatory and unfair.
NEPRA’s authority, including Chairman Wasim Mukhtar, Member (Technical) Rafiq Ahmed Sheikh, Member (Development) Maqsood Anwar Khan, and Member (Legal) Amna Ahmed, held an extensive public hearing on the matter.
The Power Division team, led by Additional Secretary Masood Bhatti, Naveed Qaiser, and Abid Lodhi, defended the package, which has already received federal cabinet approval.
Officials stated that the package applies not only to DISCOs but also to K-Electric customers and is subsidy-neutral, meaning it does not negatively affect other consumers. Only positive Fuel Cost Adjustment (FCA) beneficiaries will be impacted, while QTA, DSS, and negative FCA will not apply to increased consumption. To ensure tariff alignment, a review will be conducted every six months if demand exceeds the 25% overall increase.
However, industry bodies including the All Pakistan Textile Mills Association (APTMA), Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Karachi Chamber of Commerce & Industry (KCCI), and other representatives rejected the proposed package, citing it as flawed and non-consultative, despite government claims that it is unrelated to IMF requirements.
K-Electric, which was included in the consultation process by the Power Division, also raised concerns, stating that the package relies on outdated assumptions and data.
Rafiq Ahmed Sheikh questioned whether it would not have been better for the Power Division to consult the industry first, to find a middle ground acceptable to both the government and stakeholders. He asked if a mechanism exists to seek industry feedback before drafting or approving such packages.
If NEPRA suggests any changes, the Power Division would need new cabinet approval, potentially causing further delays. NEPRA suggested that consulting the industry now and presenting a revised package would be more practical.
In response, Masood Bhatti said that the government understands the pressure on industry due to high tariffs, but it must balance grid stability, financial resources, and industrial demand. He added that the industry itself requested the three-year package, and the Power Division worked within its limits, noting that individual packages for different sectors are not feasible.
