Pakistan’s business community deplores new, incremental electricity tariff package

incremental electricity tariff package

Pakistan’s business community has voiced vehement opposition to the government’s newest electricity consumption strategy announced over the weekend. At a public hearing held by the National Electric Power Regulatory Authority (NEPRA), leading industrial organizations said that providing electricity for Rs. 22.98 per unit at intermediate consumption and agricultural use levels was discriminatory, overly complex and had not been discussed with industries in advance.

Industry leaders called for a uniform tariff of 9 cents per KWH and a reduction in the load factor from 60% to 40% so that everyone can share. They warned that the proposed tariff will hit industrial development hard, indeed might deal a mortal blow to it either when textile units, which account for more than 60% of Pakistan’s exports.


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Officials from the government maintained that the plan is a subsidy-neutral approach which is necessary for grid stability. By rising the bar, it claimed that this could add a further Rs. 116 billion to GDP and also help it organize capacity payments worth Rs 17 trillion. They pointed out that this policy builds upon past and promotes changes in energy use patterns during the period of rising solarisation.

However, many NEPRA officials and industry representatives criticised the policy as lacking in previous consultation. They called on the government to revise proposal to make sure it is industry supporting and regionally competitive.


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