Stakeholders endorse consultative approach on proposed multi slab ToU industrial tariff regime

ISLAMABAD, Mar 26 (APP): The Ministry of Energy (Power Division) on Thursday successfully conducted a consultative session on the proposed draft multi slab Time to Use industrial tariff regime, bringing together key stakeholders from across Pakistan’s industrial landscape.

The session was attended by representatives from Federation of Pakistan Chambers of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association (APTMA), Lahore Chamber of Commerce and Industry (LCCI), along with other industrial consumers and media representatives, said a news release.

The consultative session is part of a broader, transparent, and inclusive process initiated under the directions of Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, aimed at developing a tariff mechanism that better aligns with the needs of the industrial sector while ensuring the sustainability of the power system.

During the session, Engr. Syed Faizan Ali (Energy Advisor, Ministry of Energy), Ammar Habib (Energy Expert), Rimsha Rehan (PhD Researcher, Tariff – University of Melbourne), Abid Lodhi (Managing Director, PPMC), Naveed (Chief, PPMC), and Burair (Team Lead, PPMC) presented the key features of the proposed tariff package.

The proposed regime is designed as an optional (opt-in) tariff for industrial consumers and will not be mandatory. It introduces a structure comprising higher fixed charges, aimed at ensuring recovery of capacity costs, alongside three Time-of-Use (ToU) slabs with comparatively lower variable energy charges.

This design is intended to incentivize increased industrial electricity consumption, particularly during off-peak and solar production hours, while encouraging efficient demand-side management. Furthermore, it was highlighted that smart meters will be installed for consumers opting into this tariff, enabling accurate measurement, setting and implementation of the ToU-based pricing mechanism.

Industrial stakeholders actively participated in the discussion and shared valuable recommendations to further refine the proposed tariff structure in line with ground realities. Their main observations were related to sanctioned loads, industrial types, the amount of fixed charges, and mechanism of recovery of fuel cost adjustments (FCA) and quarterly tariff adjustments (QTA).

Their input focused on practical implementation considerations, operational complexities and ensuring that the mechanism effectively supports industrial competitiveness while ensuring full cost of service recovery.

The representatives from industry bodies, including FPCCI, APTMA, and LCCI, appreciated the proactive approach of the minister and the Power Division for engaging stakeholders at the development stage of this tariff regime. They acknowledged the importance of such consultative processes and extended their full support in providing constructive feedback for the finalization of the tariff regime.

The Ministry reaffirmed its commitment to incorporating stakeholder feedback into the final design of the proposed tariff mechanism. This consultative exercise will continue through subsequent sessions, ensuring that the final framework is well-informed, balanced, and conducive to long-term industrial growth in Pakistan.

The session concluded on a positive note, with a shared understanding that collaborative efforts between the government and industry are essential to achieving efficient and sustainable energy future.