Multi-slab power tariff proposed for industrial consumers

March 25, 2026 (MLN): New optional electricity tariff mechanism for industrial consumers is being considered to improve energy efficiency and reduce costs, with the first nationwide stakeholder consultation scheduled online for March 26.

The initiative, led by Sardar Awais Ahmed Khan Leghari, aims to introduce a flexible multi-slab tariff structure based on time-of-use pricing, according to a press release issued.

Under this framework, industries will be able to opt into a system where electricity rates reflect average marginal costs during different periods of the day.

The proposed tariff model includes two key components.

Fixed charges will be based on Maximum Demand Indicators (MDI) and are expected to be relatively higher, encouraging industries to manage and reduce peak demand.

Meanwhile, variable energy charges will be rationalized and aligned more closely with actual electricity costs, offering more transparent and cost-reflective pricing.

Officials believe the new structure will encourage industries to shift operations to lower-cost, off-peak hours, thereby improving overall load management.

It is also expected to enhance system efficiency by increasing off-peak consumption, reducing strain on the grid during peak times, and limiting the need for expensive capacity expansions.

The reform is designed to support industrial productivity by providing more predictable energy costs while strengthening Pakistan’s long-term economic and energy sustainability.

Following a series of internal technical and consultative meetings, the Power Division has now moved to broaden engagement.

Extensive consultations will be held with industrial consumers, chambers of commerce, and trade bodies nationwide, with feedback to be incorporated into the final design of the tariff mechanism.

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