Islamabad
Skepticism abounded at the National Electric Power Regulatory Authority’s (Nepra) public hearing Tuesday, where business leaders lambasted the government’s incremental consumption package for industrial and agricultural users as convoluted, inequitable, and ineffective in reviving demand plagued by high costs and solar proliferation.
The scheme, offering electricity at Rs22.98 per unit for excess usage beyond a December 2023-November 2024 baseline across time-of-use and non-ToU categories in DISCOs and K-Electric, is pitched as a three-year subsidy-neutral fix. Power Division officials hailed it as “wisdom from past lessons,” projecting a Rs1.16 trillion GDP infusion by spurring extra shifts and alleviating Rs1.7 trillion in capacity payments to idle plants—equivalent to Rs17 per unit.
Yet, stakeholders like the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and All Pakistan Textile Mills Association (APTMA) dismissed it outright. FPCCI’s Rehan Jawed decried the one-year reference period as too rigid, urging a three-year extension, simplification of eligibility, and a slash to Rs16/unit to offset cross-subsidies. APTMA’s Syed Absar Ali forecasted paltry 15% uptake, excluding captive and wheeling consumers due to a steep 60% load factor, while textile rep Amir Sheikh demanded a flat 9 cents/unit and 40% threshold for export viability. Tanveer Barry warned of inevitable confusion and early demise.
Amid solarisation’s ripple—6,000 MW net metering plus 12,000-13,000 MW off-grid shifts flattening daytime loads, slashing agricultural demand 40-50%, and extending peaks to mornings—officials refuted absolute declines, attributing them to shutdowns and tariffs. They stressed the package’s grid-stabilizing intent, with built-in reviews if marginal costs climb, though low-risk assurances rang hollow. Nepra’s technical member grilled on stakeholder buy-in, highlighting tariff uncertainty.
As industries grapple with shutdowns, the hearing exposed a chasm: government’s optimism versus sector pleas for equitable revival. Revisions loom essential to avert deeper economic drag in Pakistan’s power-starved landscape.