Nepra To Approve Incremental Package for Industrial, Agriculture Consumers
The National Electric Power Regulatory Authority (NEPRA) is set to approve an incremental consumption package for industrial and agricultural electricity consumers.
The power regulator will hold a public hearing on November 11, 2025, to deliberate on a federal government motion seeking approval for an incremental consumption package for industrial and agricultural electricity consumers. The move is designed to revive power demand, improve system utilization, and reduce the financial burden of idle generation capacity.
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According to a motion filed by the Ministry of Energy (Power Division), electricity consumption in Pakistan’s industrial sector has dropped by 14 percent and in agriculture by a staggering 47 percent over the past three years. The decline is attributed to sluggish economic activity, structural adjustments, and greater use of alternative power sources such as net metering, which has reached 6,035 megawatts.
The new package proposes a flat rate of PKR 22.98 per unit for both Time-of-Use (ToU) and Non-ToU categories of industrial and private agricultural consumers connected to XW-DISCOs and K-Electric. The rate will apply on incremental consumption—electricity used above reference levels determined from December 2023 to November 2024—and will remain effective for three years from the date of approval.
The initiative, described as subsidy neutral, will not burden the federal budget. Positive Fuel Cost Adjustments (FCAs) will apply to eligible consumers, while Quarterly Tariff Adjustments (QTAs), Debt Service Surcharge (DSS), and negative FCAs will not be applicable on incremental consumption. If incremental usage in these sectors exceeds 25 percent growth above baseline, the scheme will be reviewed to account for marginal cost variations.
All Captives Power Plants (CPPs) will be considered as new consumers for benchmark consumption calculations. Net-metering consumers will be eligible for the package, if and only if there is excess import by the consumer for the current month in the respective peak and off-peak periods (Net meter consumer’s reference consumption will be based on imported units only). However, their incremental consumption will be capped on the net imported units (Imports minus Export during current month). Additionally, the incremental consumption shall be distributed among peak/off-peak periods on a pro-rata basis of incremental units
The Power Division noted that previous schemes—such as the Industrial Support Package (2020–23) and Bijli Sahulat Package (2024–25)—boosted industrial consumption by up to 14 percent, proving the effectiveness of targeted incentives in stimulating productivity and employment.
Semi-annual reviews will be conducted to ensure cost-revenue alignment, and the scheme will automatically terminate if tariff hikes are required for two consecutive reviews. NEPRA has invited stakeholders to submit comments or participate in the online public hearing through Zoom.
The government expects the package to help stabilize grid operations, especially during surplus generation hours, while enabling industries and farms to benefit from lower marginal electricity costs and boost economic output.
