Incremental concessional package: PD claims industries net over Rs12bn in 2 months

ISLAMABAD: The Power Division has claimed that the country’s industrial sector received financial benefits exceeding Rs 12 billion over two months — December 2025 and January 2026 — under the incremental concessional package.

The Division shared details for the two-month period after industry representatives asserted that they had not gained any real benefit from the package. According to industry stakeholders, the increase in electricity consumption was primarily due to the shifting of operations from gas-based Captive Power Plants (CPPs) to the national grid, rather than as a result of the concessional package.

However, these claims were challenged by a representative of the Power Planning & Monitoring Company (PPMC), who maintained that the industry had received substantial financial relief under the package.

READ MORE: Incremental consumption package: Industry, PD lock horns over financial impact

The matter was discussed during a hearing of the National Electric Power Regulatory Authority (Nepra) regarding a proposed reduction in industrial tariffs by Rs 4.02 per kWh through the removal of a cross-subsidy amounting to Rs 101 billion. Industry representatives also wrote to the government disputing PPMC’s claims about the financial impact of the concessional package.

On Friday, the spokesperson for Pakistan’s Power Division released statistics and an overall review of the three-year long-term industrial concessional package for December 2025 and January 2026.

According to official data, 127,686 industrial consumers benefited from the package during these two months, receiving cumulative relief of Rs 12.125 billion. This represents 46 percent of the total 278,961 industrial consumers. Under the package, both small and large industries received a benefit of Rs 10.3 per unit on the consumption of surplus electricity.

The spokesperson stated that a total of 1,176 million units of electricity were sold to industries under the surplus package during the two months, accounting for 23.8 percent of total industrial electricity sales.

In December 2025 alone, 557 million units were sold under the surplus package, representing 23 percent of total industrial consumption for the month. This translated into financial relief of Rs 5.743 billion. A total of 125,829 consumers benefited in December, constituting 45 percent of total industrial consumers.

In January 2026,619 million units were sold under the package, accounting for 24.5 percent of total industrial consumption. The financial benefit for the month amounted to Rs 6.382 billion, with 127,686 industrial consumers — or 46 percent of the total — availing themselves of the relief.

The spokesperson reiterated that Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, remains committed to supporting the industrial sector. He added that the Minister personally oversees these initiatives and regularly reviews progress updates.

Copyright Business Recorder, 2026