The government is preparing to introduce a new tariff system aimed at industrial consumers, as part of efforts to improve electricity use and provide greater flexibility to businesses.
According to the Power Division, a new optional multi-tariff Time of Use (ToU) system is under consideration. The proposal is designed to help industries manage their electricity consumption more efficiently while aligning power prices more closely with actual costs.
The move follows special directions from Federal Minister for Energy Sardar Awais Ahmed Khan Leghari, under which several internal consultations and technical meetings have already taken place.
Flexible pricing structure under review
Under the proposed framework, industrial consumers will have the option to shift to a multi-slab tariff structure. In this system, electricity prices will vary at different times of the day based on average marginal costs, allowing tariffs to better reflect the real cost of power generation.
The tariff will have two main components. The first is fixed charges, which will be set based on maximum demand indicators. These charges are expected to be relatively higher, encouraging consumers to reduce peak demand.
The second component is variable energy charges, which will be adjusted in line with actual energy costs. These charges are expected to be lower and more balanced, providing an incentive for efficient consumption.
Officials say the proposed system could offer several benefits to the industrial sector. These include better load management by increasing electricity use during low-cost periods, promoting off-peak consumption, reducing pressure on the national grid, and limiting the need for expensive capacity expansion.
The initiative is also expected to support industrial output and competitiveness, while offering more predictable energy costs and the possibility of lower overall expenses.
Following technical input, the minister has directed authorities to carry out broad consultations with all relevant stakeholders to make the system effective and comprehensive. Industrial consumers, chambers of commerce, and trade bodies will be consulted, and their feedback will be incorporated into the final mechanism.
The first consultative session in this regard is scheduled to be held online on March 26.
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