Power Division concludes consultations on multi-slab ToU tariff regime

ISLAMABAD, Mar 31 (APP):The Ministry of Energy (Power Division) on Tuesday successfully concluded a series of high-level consultative sessions with key industrial stakeholders on the proposed multi-slab ToU industrial tariff regime, aimed at fostering a transparent, inclusive, and participatory approach towards tariff design and reform.

These sessions brought together a broad spectrum of industrial stakeholders from across the country, including representatives from FPCCI (Federation of Pakistan Chambers of Commerce and Industry), APTMA (All Pakistan Textile Mills Association), LCCI (Lahore Chamber of Commerce & Industry), KATI (Korangi Association of Trade and Industry), SITE (Sindh Industrial Trading Estate), and PALSP (Pakistan Association of Large Steel Producers), along with other leading industrial consumers and members of the media.

Throughout the consultative process, industrial stakeholders widely appreciated the efforts of Federal Minister for Energy (Power Division) and the Power Division for proactively engaging industry in the development of this new tariff regime. The initiative was recognized as a significant step towards evidence-based and stakeholder-driven policymaking in Pakistan’s power sector.

Participants across all three sessions open-heartedly shared their observations, insights, and recommendations, contributing constructively to the refinement of the proposed mechanism. Key areas of discussion included; Opt-in structure and duration of the tariff regime, validity period and flexibility for industrial consumers to opt out Fixed charges framework, particularly those based on Maximum Demand Indicator (MDI), appropriate percentage application of MDI for different industrial segments, implications related to Quarterly Tariff Adjustments (QTA) and Fuel Charges Adjustments (FCA), sector-specific considerations, especially for demand-intensive industries.

In particular, stakeholders from the steel sector highlighted concerns regarding higher MDIs coupled with lower utilization factors, emphasizing the need for careful calibration or sector-specific treatment within the tariff design.

The Power Division acknowledged all feedback and reaffirmed its commitment to carefully evaluating and incorporating stakeholder input in the finalization of the tariff regime. It was reiterated in all sessions that the proposed mechanism is an optional (opt-in) tariff and will not be mandatory, thereby allowing industrial consumers to adopt it based on their operational requirements and load profiles.

The consultative sessions also highlighted the importance of smart metering infrastructure to enable effective implementation of Time-of-Use (ToU) based pricing, which forms a core component of the proposed regime.

The successful conclusion of these sessions reflects a strong partnership between the government and industry, with a shared objective of enhancing industrial competitiveness, improving energy consumption patterns and ensuring long-term sustainability of the power sector.

The Ministry of Energy (Power Division) extended its appreciation to all stakeholders for their active participation and valuable contributions, which will play a critical role in shaping a balanced and forward-looking tariff framework for Pakistan’s industrial sector.