The Govt is considering an optional multi-tariff Time-of-Use (ToU) mechanism for industrial electricity consumers. The proposal aims to improve efficiency and rationalize electricity pricing, the Power Division said on Wednesday.
The plan, directed by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, has been discussed in several internal consultative and technical meetings. Under the framework, industries can choose a multi-slab tariff where electricity costs vary based on usage during different periods.
The proposed tariff includes two components. Fixed charges, linked to Maximum Demand Indicators (MDI), will be higher to encourage reduction of peak demand. Variable energy charges will align with actual energy costs, allowing industries to manage expenses efficiently.
According to the Power Division, the mechanism encourages industries to shift operations to lower-cost periods. It also promotes electricity use during off-peak hours, improving the national grid’s load factor. This could reduce pressure on the system and limit the need for costly capacity additions.
The Govt expects the new structure to enhance industrial productivity and competitiveness. Predictable energy costs may support sustainable economic growth while incentivizing efficient energy consumption.
Authorities have been directed to conduct extensive stakeholder consultations. Industrial consumers, chambers of commerce, and trade bodies will provide input before finalizing the mechanism. The first consultative conference will be held online on March 26.
Earlier, Prime Minister Shehbaz Sharif highlighted that the ongoing regional conflict has disrupted global economic stability. Rising oil prices and attacks on Gulf energy infrastructure have increased inflation and strained household finances.
In response, the Govt implemented austerity measures, including budget cuts and reduced development spending, to absorb the impact of rising fuel costs. The premier emphasized that relief mechanisms are being designed to target only the most deserving segments of society.
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With this ToU proposal, the Govt aims to balance industrial growth, grid stability, and cost-effective electricity management for the country’s energy sector.
