ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has urged the Power Division to revisit the existing peak hours regime to better align it with the actual power demand patterns across the national grid, warning that the current system is leading to massive underutilization of available capacity.
In a letter addressed to Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, APTMA Secretary General Shahid Sattar highlighted that the demand profile of distribution companies (Discos) and K-Electric over the past year indicates a consistent shift in peak demand toward midnight, rather than during the officially designated hours of 6:00 p.m. to 10:00 p.m. (March–May) and 7:00 p.m. to 11:00 p.m. (June–August).
APTMA noted that system demand frequently remains above 21,000 megawatts well after the end of the official peak window, indicating that there are no significant transmission constraints during these hours. The association argued that the higher peak-hour tariff discourages consumption, resulting in suboptimal utilization of generation and transmission capacity.
“This artificial restriction on consumption suppresses industrial output and prevents the power sector from achieving optimal load management,” Sattar stated, adding that APTMA has been consistently advocating for a rationalization of peak-hour tariffs based on actual grid performance data.
While acknowledging that a complete realignment of peak and off-peak tariffs may not be immediately feasible due to system and revenue limitations, APTMA proposed a data-driven review to identify an equilibrium point where higher fuel costs during peak hours are offset by the lower per-unit capacity charges achieved through fuller utilization of existing assets.
“Such an evidence-based approach would enable the introduction of differentiated pricing models that incentivize consumption among price-sensitive industrial users—enhancing grid efficiency without compromising stability,” the letter added.
APTMA further underscored the 8,000–10,000 MW gap between summer and winter demand, calling it a clear indicator of underused generation capacity. The association proposed a lower winter tariff, ideally based on marginal generation costs, to encourage industrial production during the off-season and improve the national system load factor.
“Most capacity costs are already recovered through the existing tariff structure,” Sattar emphasized, “so offering a reduced winter tariff would make economic sense by distributing fixed costs more efficiently and supporting industrial competitiveness.”
APTMA urged the Power Division to review the current policy — not to eliminate peak hours entirely, but to realign them with real-time grid demand. The association maintained that such reform would deliver tangible benefits to both the power sector and consumers by maximizing capacity utilization and reducing inefficiencies.
“We remain ready to provide technical expertise, data analysis, and modelling support to the Power Division in undertaking this important evaluation and policy adjustment,” APTMA concluded.
Story by Mushtaq Ghumman
