ISLAMABAD: The Power Division, under the direction of Federal Minister for Power Sardar Awais Ahmed Khan Leghari, is evaluating a new optional tariff mechanism aimed at facilitating industrial consumers and enhancing efficiency in electricity usage.
According to official sources, the minister has chaired multiple consultative and technical sessions to finalize the framework. The proposed model will allow industries to opt for a multi-slab tariff structure, with electricity pricing linked to time-of-use and average marginal cost signals, ensuring a more accurate reflection of supply costs.
The tariff will include two components: fixed charges based on Maximum Demand Indicators (MDI), expected to encourage reduced peak consumption, and variable energy charges aligned with actual energy costs to ensure cost-reflective pricing.
Officials believe the initiative will improve load management by incentivizing industries to shift operations to off-peak hours, enhance overall system efficiency, and reduce pressure on the national grid—ultimately minimizing the need for expensive capacity additions.
The mechanism is also expected to boost industrial productivity by offering more predictable and potentially lower energy costs, supporting long-term competitiveness and sustainable economic growth.
The minister has directed that the proposal be refined through extensive stakeholder consultations, involving industrial consumers, chambers of commerce, and trade bodies nationwide. The first consultative conference is scheduled to be held online on March 26.
Separately, the minister commended the National Grid Company’s indigenization policy, highlighting contracts worth Rs12.67 billion awarded to local industries, achieving nearly 40 percent cost savings compared to imports.
He noted that the initiative is promoting local manufacturing through educational orders, joint ventures, and establishment of local subsidiaries. So far, nine educational orders worth Rs900 million have been issued, while 11 local firms have been registered for capability development.
Emphasizing broader economic benefits, the minister said the policy is contributing to foreign exchange savings, faster project execution, and strengthening of domestic industries. He described indigenization as a key driver for export-led growth, particularly in the steel, cable, and conductor sectors, and reaffirmed the government’s commitment to industrial self-reliance and long-term economic resilience.
Story by Mushtaq Ghumman
