Power Division Rejects Claims of Industrial Tariff Hike

The Power Division has formally rejected recent reports suggesting that Pakistan has increased electricity tariffs for industrial consumers. Officials clarified that a widely cited figure of Rs. 25.30 per unit actually refers to a revised marginal rate under the Incremental Consumption Package rather than the regular industrial tariff.

According to a departmental spokesperson, the regular industrial electricity tariff has actually declined by approximately Rs. 18.94 per unit, including taxes, when compared with the rate applicable in March 2024. Statistical data shows that the average industrial electricity rate stood at Rs. 34.40 per kilowatt-hour in October 2026, excluding all applicable taxes.

This clarification comes in response to public discussions and media reports concerning energy costs for businesses and manufacturing sectors across the country. Government representatives stressed the importance of separating regular utility pricing from specialized promotional packages designed for specific categories of users.

Understanding Pakistan's Electricity Pricing Structure

Electricity billing in Pakistan involves complex tariff structures overseen by regulatory authorities and government ministries. The National Electric Power Regulatory Authority, commonly known as NEPRA, determines base tariffs, quarterly adjustments, and fuel price variations based on generation costs, transmission losses, and currency fluctuations.

Regular industrial tariffs apply uniformly to standard commercial production units based on their connection categories and load profiles. These rates incorporate various components, including capacity charges, fixed costs, and variable energy charges per kilowatt-hour consumed during peak and off-peak hours.

In contrast, promotional schemes such as the Incremental Consumption Package are introduced to encourage higher energy usage during specific periods by offering discounted marginal rates. These targeted packages aim to support industrial output and agricultural productivity by lowering the cost of additional power consumed above a defined historical baseline.

Details of the Revised Incremental Consumption Package

The spokesperson stated that the Incremental Consumption Package for industrial and agricultural consumers is currently being revised because marginal electricity generation costs have increased amid the prevailing war situation.

These revised marginal rates are scheduled to take effect in November 2026. The spokesperson added that the adjustment, following a NEPRA determination, is intended to ensure that the cost of providing relief under the package is not transferred to other electricity consumers, particularly those who do not qualify for the scheme.

By adjusting the marginal rates for incremental consumption, authorities seek to balance the financial burden on the national power grid while maintaining targeted incentives for high-volume producers.

Financial Impact and Relief Delivered to Consumers

The Power Division provided detailed figures regarding the performance and financial impact of the relief package over recent months. Officials stated that the package covered 6,940 gigawatt hours of incremental electricity consumption between December 2025 and September 2026.

This volume of energy usage delivered an estimated financial benefit of Rs. 43.5 billion to participating consumers across the country. Industrial consumers received direct discounts ranging from Rs. 5 to Rs. 10 per unit on their incremental electricity consumption.

These targeted reductions succeeded in lowering overall electricity bills for eligible businesses by an average of Rs. 1.5 to Rs. 2.5 per unit, providing tangible support to manufacturing sectors facing competitive pressures and rising operational expenses.

Participation Rates Among Eligible Businesses

Uptake of the Incremental Consumption Package has reached significant segments of the business community, according to official figures released by the ministry. Out of 518,316 eligible consumers across the designated sectors, exactly 209,335 have successfully benefited from the initiative.

This participation rate represents approximately 40 percent of all eligible entities taking advantage of the discounted rates for additional power consumption. The Power Division maintains that the revised marginal rate of Rs. 25.30 per unit should not be confused with the regular industrial electricity tariff, which continues to show a decline compared with the baseline figures recorded in March 2024.

Authorities continue to monitor energy demand and generation costs closely to ensure stability across industrial and agricultural supply chains as the winter season approaches.