The National Electric Power Regulatory Authority (NEPRA) is set to consider a new electricity package aimed at industrial and agricultural consumers. The proposal seeks to reverse a significant decline in power demand and reduce the financial burden of idle generation capacity.
A public hearing on the federal government’s motion is scheduled for November 11, 2025. The initiative aims to boost electricity consumption, which has fallen by 14% in the industrial sector and 47% in agriculture over the past three years.
The package offers a flat electricity rate of Rs 22.98 per unit for both industrial and private agricultural consumers. This rate will apply to “incremental consumption,” meaning power used above a baseline level determined from December 2023 to November 2024.
The Power Division describes the plan as subsidy-neutral, meaning it will not require support from the federal budget. The special rate will be effective for three years upon approval.
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Certain surcharges, including Quarterly Tariff Adjustments and the Debt Service Surcharge, will not apply to this incremental power usage.
The decline in consumption is attributed to slow economic growth and a shift to alternative sources like net metering. The government expects this package to stabilize grid operations and allow industries to benefit from lower marginal power costs.
Similar past schemes successfully boosted industrial consumption. The regulator will conduct semi-annual reviews to ensure the program remains cost-effective
