Business community seeks restoration of relief in electricity tariff

ISLAMABAD: The country’s business community has urged the Chief of Army Staff, Field Marshal Syed Asim Munir, to intervene and help restore the relief in electricity tariffs for the industrial sector.
This appeal was highlighted by Aamir Sheikh, a representative of the textile sector, who noted that although the Prime Minister had announced a relief of Rs 7.5 per kWh, which was not time-bound, NEPRA has since reduced this relief to merely Rs 2.5 per kWh.
He also raised concerns about the increase in the cost of bagasse-based fuel, which now nearly matches the cost of coal — a situation he believes could be the beginning of a scandal. Additionally, he recommended that the fertiliser subsidy be removed from the RLNG pricing mechanism to help reduce electricity costs.
Industry representatives further emphasized that, as per the Power Minister’s earlier announcement, the electricity duty should not be applied to bills from July onwards. They also reiterated their request to cease the use of furnace oil for power generation, citing the Rs 82,000 per ton levy on furnace oil as a significant burden. Moreover, they demanded the continuation of the Rs 1.71 per unit tariff reduction, which is based on the additional Petroleum Levy (PL) of Rs 10 per litre, arguing that the recovery of PL is still ongoing.
“This relief was intended to last the entire year,” said Sheikh. “In fact, the gas levy was also supposed to be used for reducing electricity rates, but that hasn’t happened.”
He stressed that electricity tariffs for the industrial sector should not exceed Rs 30 per kWh, as anything beyond this level is unaffordable for industry.
Rehan Jawed from Karachi pointed out that a core issue is the declining demand for grid electricity due to the rapid adoption of solar energy. As grid demand falls, energy losses in distribution — especially in high-loss areas — also decrease. He highlighted solar energy as a clear winner, not only because it displaces costly fossil fuel-based power plants but also because it helps reduce line losses.
“The sharp rise in solarization is the main factor behind improved efficiency and lower losses in distribution companies (DISCOs),” he said. “Solar-generated electricity is replacing grid electricity, which has resulted in reduced distribution losses and improved revenue collection over the past three years.”
Arif Bilwani, another participant from Karachi, expressed serious concern over the steep increase in rates for bagasse-fired power plants, urging NEPRA to review the new rates.
A representative of the Cold Storage and Warehousing sector also criticized NEPRA for failing to issue a decision on the industry’s review petition, which has been pending since May 22, 2025.
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