The All Pakistan Textile Mills Association (APTMA) has urged the Power Division to review the current peak hours policy in line with the actual electricity demand in the country. The association highlighted that the 8,000 to 10,000 MW difference between summer and winter demand reflects the inefficient utilization of the power system’s capacity.
According to sources, in a letter addressed to Federal Minister for Energy Sardar Awais Ahmad Khan Leghari, the APTMA Secretary stated that demand data from distribution companies (DISCOs) and K-Electric over the past year clearly shows that maximum electricity demand is now consistently occurring at night, close to midnight. Meanwhile, the officially designated peak hours remain from 6 PM to 10 PM (March–May) and 7 PM to 11 PM (June–August).
APTMA noted that even after the end of official peak hours, electricity demand continues to rise significantly—often exceeding 21,000 MW—which indicates that there is no real stress on the transmission system during the designated peak period. The association argued that high peak-hour tariffs are discouraging electricity consumption, resulting in underutilization of system capacity.
The letter stated that APTMA and other industrial bodies have been advocating for reforms in the peak-hour tariff for several months. While immediate uniformity between peak and off-peak tariffs may not be feasible, APTMA emphasized that the Power Division must conduct a comprehensive, data-driven analysis to support more informed decision-making.
APTMA proposed a study to determine the point at which the higher fuel cost during peak hours is offset by lower per-unit costs achieved through improved system efficiency. At this equilibrium point, the overall tariff impact would be nearly neutral, enabling the introduction of a new economically viable peak-hour rate.
The association further said that if the Ministry of Energy adopts this strategy, it could encourage electricity usage—especially among consumers with higher price sensitivity—leading to better grid performance and a more stable system.
Highlighting the 8,000 to 10,000 MW seasonal demand difference as a major opportunity, APTMA said that despite lower winter demand, most generation costs are already recovered under the current tariff structure. Therefore, there is a strong economic justification for introducing a separate and significantly lower winter tariff, which would incentivize industries to use more electricity during the colder months. This would enhance overall system capacity utilization and help distribute costs more equitably.
APTMA urged the Power Division to reassess the peak-hours policy to align it with actual national grid demand rather than abolishing it entirely. The association assured the ministry that it is ready to provide technical assistance, data analysis, and modeling support during the process.
