Govt prepares major overhaul of industrial electricity tariffs

ISLAMABAD: The government has started preparing for major changes in electricity tariffs for the industrial sector. For this purpose, a new and modern tariff system is being considered.

According to sources, the Ministry of Energy Power Division is planning to introduce a ‘time of use’ based multi-tariff system for industrial consumers. Under this system, the price of electricity will be fixed according to different times.

That is, electricity will be cheaper during low-use hours, while the price will be higher during peak demand hours.

In this proposed system, consumers will be given the option to opt for the new tariff or remain on the old system. In this way, industrialists will be able to decide according to their needs.

According to officials, this system will have two main parts. One will be fixed charges that will be according to the maximum demand for electricity, while the other part will be energy charges that will be determined according to the actual production cost.

With this move, industrialists will use more electricity during cheap times, which will reduce their expenses. Along with this, the pressure on the electricity system will also reduce and load management will be improved.

In addition, the need for generating electricity from expensive sources will also be reduced.

Work on this project is underway at a rapid pace under the direction of Federal Minister Sardar Owais Ahmed Khan Leghari. The government is also consulting various industrial organizations, chambers of commerce and other relevant stakeholders to formulate a workable and balanced policy.