NewzShewz
No Result
View All Result
Saturday, February 28, 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 AMG
April 14, 2025
in Energy
0
APTMA seeks 4% cut in interest rates
80
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

Rs 4.04/unit relief part of base tariff not linked to FCA or QTA : Power Division

by AMG
February 27, 2026
0

ISLAMABAD: The Power Division on Friday clarified that the Prime Minister’s relief package of Rs 4.04 per unit for industry...

Read more
SSGC Board appoints Rajput as MD/CEO for three years
Energy

SSGC Board appoints Rajput as MD/CEO for three years

by AMG
February 27, 2026
0

ISLAMABAD: SSGC's Board of Directors has appointed Mr. Muhammad Amin Rajput as the Company's Managing Director / Chief Executive Officer...

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
Renegotiation of IPP Deals: Politics at the Cost of Investment

Rs 4.04/unit relief part of base tariff not linked to FCA or QTA : Power Division

February 27, 2026
SSGC Board appoints Rajput as MD/CEO for three years

SSGC Board appoints Rajput as MD/CEO for three years

February 27, 2026
GHCL Board’s First Meeting Set to Be stormy

PD rejects NEPRA’s claims about Discos performance

February 26, 2026
Power Minister seeks justification of Moro-Matiari Transmission Line

Low utilization of renewable energy plants , high capacity payments push up Pakistan’s power costs

February 26, 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.