The Power Division has submitted an application to the National Electric Power Regulatory Authority (NEPRA) seeking approval for a three-year additional consumption package for industrial and agricultural consumers, priced at Rs. 22.98 per kilowatt-hour (kWh).
NEPRA will hold a public hearing on the federal government’s proposal on November 11, 2025. According to the Power Division, electricity demand has declined significantly across various consumer categories over the past three years, reflecting economic slowdown, shifting consumption patterns, and increased reliance on alternative sources such as net metering, which has reached 6,035 MW.
The decline has been particularly notable in the industrial and agricultural sectors, where electricity usage has dropped by 14% and 47% respectively. Lower demand has resulted in underutilized system resources, reducing fixed cost recovery and pushing tariffs higher. Historically, government initiatives aimed at boosting consumption have helped improve system utilization.
For instance, the Industrial Support Package (November 2020 to October 2023) led to a 14% increase in industrial sales, while the Electricity Facility Package (December 2024 to February 2025) boosted industrial consumption by 6.9%, 2.7%, and 10.2% over three months—demonstrating that the right incentives can sustain production and employment.
According to the Power Division, industrial and agricultural consumers play a crucial role in system stability, as their demand can be aligned with daylight hours when solar generation is abundant. This not only reduces the need for additional infrastructure but also enhances production, revenue, and employment levels.
The federal government approved the package on November 5, 2025, and it will be applicable to all distribution companies (DISCOs) as well as K-Electric. Under the scheme, the Rs. 22.98 per unit tariff will apply to industrial and private agricultural consumers on additional consumption compared to the corresponding period of the previous year. The package will remain valid for three years. Positive Fuel Cost Adjustments (FCA) will apply, but negative FCAs, Quarterly Tariff Adjustments (QTAs), and debt servicing surcharges will not be charged.
If total industrial and agricultural consumption increases by more than 25%, prices will be reviewed. Every six months, cost-revenue balance reviews will be conducted to determine whether tariff adjustments are needed. If two consecutive reviews indicate the need for tariff hikes, the scheme will be discontinued.
The Power Division stated that the proposal has been submitted in accordance with Sections 7 and 31 of the NEPRA Act to formally incorporate the cabinet-approved incentive package into the tariff framework.
