Pakistan Plans New Industrial Electricity Tariff to Discourage Low Usage and Solar Shift

Islamabad:The government has prepared a new electricity tariff plan for industries aimed at restructuring power consumption patterns and discouraging the shift toward solar energy, according to official sources.

Under the proposed policy, industries that consume less electricity will face higher fixed charges, while heavy consumers will be offered lower per-unit rates as an incentive to increase usage.

Sources in the Power Division said the new tariff framework is likely to be implemented within the next two months. Industrial electricity prices could be reduced to between 6 and 8 US cents per unit for high-usage consumers.

The plan also includes measures to discourage industries shifting away from the national grid, with higher charges imposed on low-usage units. In the initial phase, the tariff changes will apply only to industrial consumers, with possible future expansion to commercial and residential users.

The proposal has reportedly been shared with the International Monetary Fund (IMF), which has requested detailed data on electricity consumption patterns and industries moving off-grid.

Officials argue that the new policy is necessary to cover fixed costs of the national grid and to stabilize the power sector. The policy is also expected to increase electricity demand by around 1,000 megawatts, according to estimates.