Islamabad: The government has shared a new plan with the IMF to raise fixed charges on electricity bills. This punishes industrial users shifting to solar power and under-utilising their sanctioned loads. The two-part industrial tariff policy aims to recover costs from idle capacity payments caused by declining grid demand. Higher grid consumption will lower unit costs, while low usage attracts heavier fixed charges.
Power Minister Sardar Awais Laghari recently presented this policy to the IMF. Officials hope it will encourage industries to stay on the national grid longer by making off-grid options less attractive financially. The policy will initially apply to industrial connections before expanding to commercial and residential users. It addresses the rapid migration from the expensive national grid due to high tariffs.
Fixed costs currently dominate electricity bills. The new structure spreads these costs over higher sales volumes, potentially reducing per-unit prices and boosting demand by around 1,000 MW in six to 12 months. Examples show extreme cases, like a Karachi industry paying over Rs2,000 per unit due to high fixed charges on minimal consumption. Such bills are expected to rise further under the new rules.
The IMF has raised concerns over falling industrial electricity demand. Many industries have adopted solar panels and gas-based generation to cut costs, threatening the financial stability of power distribution companies. Power Division officials confirmed the policy remains optional. Industries using over 50% of their sanctioned load could see tariffs drop to 7-8 US cents per kWh, with further reductions possible at higher utilisation levels.
This initiative aims to align tariffs with actual cost structures, benefiting both the government and compliant industries. Final approval and implementation are expected within two months.