ISLAMABAD: Pakistan is considering introducing an optional multi-tariff electricity system for industrial consumers aimed at improving energy efficiency, reducing peak demand and supporting industrial competitiveness.
Under the proposed framework, industries would have the option to choose a time-of-use (ToU) pricing model that offers different electricity rates at different hours of the day. The move is part of broader power sector reforms designed to optimise electricity consumption and ease pressure on the national grid, officials said Wednesday.
The proposal, spearheaded under a special initiative by Power Minister Sardar Awais Ahmed Khan Leghari, introduces a multi-slab, time-of-use pricing model allowing industrial consumers to choose a more flexible billing structure. Several technical and consultative meetings have already been held to shape the framework.
According to a Power Division spokesperson, under the plan, industries opting into the system would pay a combination of fixed and variable charges. Fixed charges, based on Maximum Demand Indicators (MDI), are expected to be relatively higher to encourage companies to reduce peak demand. Variable energy charges, meanwhile, would be rationalised and aligned more closely with actual electricity costs, offering more transparent and potentially lower pricing.
Officials say the structure is designed to push factories to shift operations to off-peak hours, helping balance electricity demand across the day. By improving load management and reducing peak-time stress on the grid, the system could also limit the need for expensive new power capacity.
The reform is expected to support industrial productivity by offering more predictable energy costs, while also improving the overall system efficiency. Authorities believe the shift could serve as a catalyst for sustainable industrial growth and long-term economic development.
Leghari has directed officials to ensure the mechanism is inclusive and effective through extensive stakeholder engagement. Consultations are planned with industrial consumers, chambers of commerce and trade bodies nationwide, with feedback to be incorporated into the final design. The first consultative conference is scheduled to be held online on March 26.
