NewzShewz
No Result
View All Result
Wednesday, April 15, 2026
  • Home
  • Finance
  • Politics
  • Energy
  • International
NewzShewz
  • Home
  • Finance
  • Politics
  • Energy
  • International
No Result
View All Result
NewzShewz
No Result
View All Result
Home Energy

APTMA seeks abolishment of ToU tariff structure for industry

by NewzShewz Desk
April 14, 2025
in Energy
0
APTMA seeks 4% cut in interest rates
84
VIEWS
Share on FacebookShare on Twitter

ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has demanded of the government to abolish peak –rate electricity for industrial consumers.
In a letter to Prime Minister, Shehbaz Sharif, APTMA’s Secretary General, Shahid Sattar appreciated the government for recent efforts to rationalize electricity tariffs, which have led to a welcome reduction in industrial power rates. These steps signify a positive direction toward addressing one of the most critical challenges faced by the industrial sector.
However, APTMA is of the view that despite this progress, the prevailing electricity tariff of 10-11 cents/kWh remains above the regionally competitive benchmark of 9 cents/kWh. Competing economies provide electricity at rates ranging between 5 to 9 cents/kWh, placing Pakistan’s industrial base-particularly the energy-intensive textile sector-at a distinct disadvantage. The high cost of energy continues to pose a severe barrier to export competitiveness and manufacturing growth.
“A further reduction in the industrial power tariff can be attained by abolishing the Time of Use (ToU) power tariff structure for industrial consumers. This is a revenue neutral measure as industry will consume approximately 32% more electricity during the current peak hours, as per actual data available with NEPRA, offsetting revenue loss from the higher ToU tariff,” he added.
Based on our assessment, this will directly reduce the effective weighted average tariff for industrial power consumers from Rs. 29.48/kWh (10.57 cents/kWh) to Rs. 28.36/kWh (10.16 cents/kWh)-a reduction of Rs. 1.12/kWh. The consequent increase in electricity consumption will enhance grid utilization and reduce stranded capacity, resulting in a further Rs. 0.14/kWh decrease in the average power purchase price.
This reduction may be passed on to all consumers through Quarterly Tariff Adjustments (QTA).
“The ToU structure is an archaic mechanism, from when Pakistan faced acute power shortages and needed to discourage consumption during peak hours. However, in the present context-where the country has surplus generation capacity and stranded capacity is a key contributor to some of the highest electricity tariffs globally-the continuation of ToU pricing is counterproductive,” said the Association.
APTMA stated that it is imperative to replace it with a uniform tariff at the off-peak rate to incentivize maximum power consumption, thereby improving grid utilization, reducing per-unit costs, and supporting industrial competitiveness and growth.
After sharing background, APTMA APTMA has urged the Government to abolish the ToU tariff structure for industrial consumers and transition to a uniform electricity AS-II tariff based on the current off-peak rate.

Related Posts

Renegotiation of IPP Deals: Politics at the Cost of Investment
Energy

Govt announces 2.25 hour load shedding during peak time to curb tariff hike

by NewzShewz Desk
April 14, 2026
0

ISLAMABAD : The federal government has formally announced up to 2.25 hours of daily power outages during peak hours, from...

Read more
Jawwad Cheema new PSO Boss
Energy

Jawwad Cheema new PSO Boss

by NewzShewz Desk
April 13, 2026
0

KARACHI: Jawwad Ahmed Cheema has been appointed as the Chief Executive Officer (CEO) of Pakistan State Oil (PSO).The appointment has...

Read more
  • Trending
  • Comments
  • Latest
Dasu Transmission Line Controversy Continues

OSD DMD refutes incompetence label , highlights NTDC leadership flaws, WB project issues, corruption, and contractor influence”

June 12, 2025
Investigations into IPPs Undermine Investor Confidence

KE Board…. thank you. We are leaving the meeting

November 13, 2025
Newzshewz Exclusive

NTDC BoD removes ” incompetent ” officials

April 23, 2025
Zargham Eshaq Khan steps down as MD NESPAK

Zargham Eshaq Khan steps down as MD NESPAK

November 1, 2025
Enhanced Rationalization in the Categorization of SOEs

Enhanced Rationalization in the Categorization of SOEs

0
PPIB to extend TLoS of ZSPL

PPIB to extend TLoS of ZSPL

0
CCP Fines Diamond Paint Industries PKR 5 million

CCP Fines Diamond Paint Industries PKR 5 million

0
Steering Committee on Discos

Steering Committee on Discos

0
Riyadh announces $3 billion additional support, also extends $5 billion deposits: Finance Minister

Riyadh announces $3 billion additional support, also extends $5 billion deposits: Finance Minister

April 15, 2026
Renegotiation of IPP Deals: Politics at the Cost of Investment

Govt announces 2.25 hour load shedding during peak time to curb tariff hike

April 14, 2026
Jawwad Cheema new PSO Boss

Jawwad Cheema new PSO Boss

April 13, 2026
Power generation increased by 7.3 percent in October on YoY basis

Why RMS Studies Are No Longer Enough: Rethinking Power System Analysis for Modern Inverter-Dominated Grids

April 12, 2026
  • Home
  • About
  • Contact Us
  • Privacy Policy
  • Cookie Policy
  • Terms and Conditions
Contact us: contact@newzshewz.com

No Result
View All Result
  • Home
  • Finance
  • Energy
  • International
  • Politics
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.