Three-year incremental consumption package aims to revive demand amid 14% industrial, 47% agricultural decline
Nepra officials warned Gepco over the illegal installation of Advanced Metering Infrastructure (AMI) on small meters. They said that the company was installing AMI without approval of the regulator and even without data backup. Photo: file
ISLAMABAD:
The National Electric Power Regulatory Authority (NEPRA) is set to approve an incremental consumption package for industrial and agricultural electricity consumers.
The power regulator will hold a public hearing on November 11, 2025, to deliberate on a federal government motion seeking approval for the package. The move is designed to revive power demand, improve system utilisation, and reduce the financial burden of idle generation capacity. According to a motion filed by the Ministry of Energy (Power Division), electricity consumption in Pakistan’s industrial sector has dropped by 14% and in agriculture by a staggering 47% over the past three years. The decline is attributed to sluggish economic activity, structural adjustments, and greater use of alternative power sources such as net metering, which has reached 6,035 megawatts.
The new package proposes a flat rate of Rs22.98 per unit for both Time-of-Use (ToU) and Non-ToU categories. The rate will apply to industrial and private agricultural consumers connected to XW-DISCOs and K-Electric. It will cover incremental consumption — electricity used above reference levels determined from December 2023 to November 2024. The rate will remain effective for three years from the date of approval.
The initiative, described as subsidy neutral, will not burden the federal budget. Positive Fuel Cost Adjustments (FCAs) will apply to eligible consumers. However, Quarterly Tariff Adjustments (QTAs), Debt Service Surcharge (DSS), and negative FCAs will not be applicable on incremental consumption. If incremental usage exceeds 25% growth above baseline, the scheme will be reviewed to account for marginal cost variations.
All Captive Power Plants (CPPs) will be considered as new consumers for benchmark consumption calculations. Net-metering consumers will be eligible for the package only if there is excess import by the consumer for the current month in the respective peak and off-peak periods. Their incremental consumption will be capped on the net imported units. The Power Division noted that previous schemes — such as the Industrial Support Package (2020-23) and Bijli Sahulat Package (2024-25) — boosted industrial consumption by up to 14%.
Semi-annual reviews will be conducted to ensure cost-revenue alignment. The scheme will automatically terminate if tariff hikes are required for two consecutive reviews. NEPRA has invited stakeholders to submit comments or participate in the online public hearing through Zoom.
The government expects the package to help stabilise grid operations whilst enabling industries and farms to benefit from lower marginal electricity costs.
