Pakistan Proposes Heavy Fixed Charges on Industrial Users Switching to Solar

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ISLAMABAD – Web Desk: The federal government has proposed a new two-part industrial tariff policy to the International Monetary Fund (IMF), under which industries using less electricity from the national grid would face significantly higher fixed charges, while heavy users would receive discounts on per-unit rates, according to sources.

The policy aims to reduce the growing burden of capacity payments in the power sector and keep industrial consumers connected to the national grid. The government maintains that many industries are using less electricity while maintaining their approved load capacity, and shifting to solar or other alternative sources, increasing financial pressure on the power system.

Under the proposal, if an industrial consumer uses 50% or more of its approved load capacity, it could receive a discount of approximately 1-2 US cents per unit on electricity rates, bringing industrial power prices to 7-8 cents per unit, with rates potentially falling to 6 cents per unit for even higher usage.

Energy Minister Sardar Awais Leghari recently discussed the proposal with IMF officials, who have requested data on industrial power consumption and grid-disconnecting consumers before making a final approval decision. A Power Division spokesperson confirmed the policy could be implemented within the next two months, initially applying to industrial consumers, with possible extension to commercial and domestic consumers later.

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