The government has presented a revised electricity pricing plan to the International Monetary Fund (IMF), aiming to sharply increase fixed charges on industrial power bills while lowering per-unit rates for those using higher levels of the national grid.
According to Express Tribune, the proposal, known as the “two-part industrial tariff policy”, is designed to discourage factories from operating below their sanctioned electricity load or shifting to solar and other off-grid power systems. Officials say the move is also intended to help recover the cost of unused generation capacity in the power sector.
Under the plan, industries that draw less electricity from the grid would face higher fixed charges, while those that consume more power would benefit from reduced per-unit rates. The Power Division has indicated the system could be introduced within two months, initially for industrial users before being extended to commercial and residential consumers.
Power Minister Sardar Awais Laghari recently shared the proposal with the IMF, according to official sources. The idea is to push industrial consumers to remain connected to the grid by making higher usage financially more attractive and low usage more expensive.
At present, many industrial units are reportedly paying heavy fixed costs even when their actual consumption is low. In some cases, bills rise sharply despite minimal electricity use, pushing companies to seek alternative energy sources such as solar or captive generation.
The Power Division argues that the system must maintain full infrastructure capacity regardless of usage, which creates fixed costs that need to be recovered. It claims the new structure would spread these costs across higher electricity sales and potentially reduce average tariffs for high-usage industries.
Officials estimate the policy could increase electricity demand by around 1,000 megawatts within six to 12 months, depending on how the market responds. However, concerns remain that continued migration away from the grid could further weaken the already stressed power sector.
The IMF has reportedly sought regular data on industrial electricity consumption and the pace of grid exit before giving final approval. The fund has previously raised concerns about falling demand driven by high energy prices.
A Power Division spokesperson said the plan is still under consultation and described it as optional, adding that it is aimed at improving industrial competitiveness and better use of existing power infrastructure. He said industries using more than half of their sanctioned load could see meaningful reductions in tariffs, potentially bringing costs closer to international levels.
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