Govt to set new multi-tariff electricity system for industries

ISLAMABAD: The government has started to develop a new tariff system that will apply to industrial customers. The Ministry of Energy (Power Division) is developing a multi-tariff time-of-use system, which will help industries use electricity more effectively and make their work easier.

According to sources, the initiative currently operates under the special directive of Federal Minister Sardar Owais Ahmed Khan Laghari, who has already conducted multiple internal technical and consultative meetings.

The proposed framework will allow industrial users to choose between multiple tariff options, which will charge electricity fees based on actual electricity costs that occur during various time periods.

The system will consist of two primary elements, which include fixed charges that depend on peak demand and variable energy charges that are based on actual energy expenses.

Officials predict that the system will prompt industries to shift their electricity usage toward times when costs are lower, which will assist with load management and decrease grid stress while reducing the need for expensive power generation.

The initiative will achieve three main results, which include stabilizing energy expenses while decreasing costs and enhancing both industrial output and competitiveness.

Federal Minister Laghari has instructed that the proposed system requires complete stakeholder consultations, which must include industrial customers, chambers of commerce, and trade associations. The first consultative meeting is scheduled to be held online on March 26.