KARACHI: SITE Association of Industry (SAI) President Abdul Hadi has demanded immediate suspension of the National Electric Power Regulatory Authority’s (Nepra) Incremental Consumption Package, terming the revised tariff of Rs25.30 per unit a ‘gross injustice’ as the additional cost of supplying incremental electricity is being shifted to general consumers who have not benefited from the scheme.
In post-hearing comments submitted to Nepra, the association insisted that the financial burden arising from the package must be borne exclusively by its beneficiaries and should not be transferred to the wider consumer base through Fuel Cost Adjustments (FCA).
According to Nepra’s own data cited by SAI, the loss-adjusted marginal cost exceeded the previous incremental tariff of Rs22.98 per unit by Rs19.39 in April and Rs16.24 in May 2026.
These differentials translated into approximate losses of Rs13.6 billion and Rs9.4 billion, respectively, which were absorbed by all consumers.
Abdul Hadi noted that the Independent System and Market Operator (ISMO) had confirmed during the hearing that the marginal price data was accurate and that the sharp rise in costs had been unforeseen.
He recalled that Nepra’s original decision explicitly stated that any unforeseen losses would be borne only by consumers availing the incremental package.
The association also objected to the delay in the semi-annual review, which was due in June 2026 but held four months later, arguing that the postponement had unnecessarily increased the burden on general consumers.
SAI has urged Nepra either to suspend the package forthwith or to apply the revised marginal cost to all incremental consumption from June 9, 2026, recover the difference solely from package beneficiaries, and credit the recovered amount to general consumers through the next FCA/ QTA.
The association said the industrial community, including KCCI, Korangi Association of Trade and Industry and Federal B Area Association of Trade & Industry, had also raised serious objections to the continuation of the package.
The SAI Chief was of the view that ordinary consumers who paid the difference between the marginal price and the incremental rate were charged a higher Fuel Cost Adjustment (FCA). He maintained that these consumers should be refunded the excess amount.
Hadi warned that the revised tariff risked further elevating electricity costs and industrial production expenses, thereby undermining the competitiveness of local industry.
He called on Nepra to decide every stakeholder objection on merit through reasoned findings and to introduce a clear mechanism for repealing schemes that fail to achieve their intended objectives.
Copyright Business Recorder, 2026
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