The government has submitted a proposal for major changes in industrial electricity tariffs to the IMF
Published 1 hour ago | By Pak24tv
The federal government has submitted a new “two-part industrial tariff policy” to the International Monetary Fund (IMF).
Under this policy, fixed charges will be significantly increased on industries consuming less electricity than the national grid, while those consuming more electricity will be given concessions in per-unit rates.
According to sources, the aim of this policy is to reduce the burden of increasing capacity payments in the power sector and keep industrial consumers connected to the national grid.
The government says that many industries are consuming less electricity while maintaining their approved load capacity and are moving towards solar or other alternative sources, which is increasing the financial pressure on the power system.
According to the Power Division, if an industrial consumer uses 50 percent or more of its approved load, it can get a concession of 1 to 2 US cents per unit in electricity rates. Thus, the price of industrial electricity could come down to 7 to 8 cents per unit, while in case of high consumption, it could even fall to 6 cents per unit.
Energy Minister Owais Leghari recently discussed the proposal in a meeting with IMF officials. The IMF has sought data on industrial electricity consumption and consumers leaving the grid.
The Power Division says the policy could be implemented in the next two months. Initially, it will apply only to industrial consumers, but it could later be extended to commercial and domestic consumers.
The government claims that the policy will boost industrial activities and provide globally competitive electricity to industries. However, critics say that increasing fixed charges without addressing the underlying problem of high electricity rates could further burden industries.
