ISLAMABAD: Pakistan Federation of Chambers of Commerce and Industries (FPCCI) has approached Power Minister, Sardar Awais Khan Leghari for resolution of tariff anomalies through inclusive consultation with industry.
In a letter to Power Minister, FPCCI has sought two out many pressing anomalies in the industrial tariff framework which are not only discouraging industrial growth but also resulting in avoidable financial strain on the federal government.
The anomalies are as follows; (i) B2/B3/B4 anomaly: Despite B3 and B4 consumers investing heavily in their own grid and distribution infrastructure, and thereby reducing system losses for power Distribution Companies (DISCOs), they are paradoxically charged higher per-unit tariffs than B2 consumers.
FPCCI seeks implementation of power tariff relief
This contradicts both economic logic and the principle of incentivizing efficiency ;(ii) Peak/Off-Peak hour distribution: Industries are billed punitive peak rates of Rs. 36.68 per unit during the fixed slot of 18:00 22:00 hours, whereas ISMO data confirms that the actual marginal cost during these hours is between Rs. 15 and Rs. 22 per unit.
This disconnects forces industries to curtail production, causing not only industrial losses but also underutilization of available national capacity.
FPCCI firmly believes that such anomalies can be rectified through an inclusive approach in which the voice of industry is duly considered when designing tariffs. If corrective steps are taken in consultation with industrial stakeholders it will: (a) revitalize existing industries and expand exports; (b) encourage investment in grid infrastructure and reduce losses; (c) enhance electricity sales and revenues for DISCOs; and (d) lower the overall tariffburden, benefitting all Industries of Pakistan.
“FPCCI has proposed constitution of a Consultative Committee comprising representatives from all relevant power sector institutions together with industry stakeholders. Such a forum, under Power Minister’s guidance will ensure that industrial tariffs reflect round realities, encourage competitiveness and strengthen national economic growth,” Secretary General FPPCI wrote in his letter.
Copyright Business Recorder, 2025
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