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Government Plans New Power Tariff to Discourage Shift to Solar Energy


Industries using less grid electricity could face higher fixed charges under proposed policy.

Image: Pakistan Today


The government is preparing a new electricity pricing policy aimed at keeping industries connected to the national grid. Under the proposed two-part tariff system, businesses that consume more electricity from the grid would receive lower per-unit rates, while those relying on solar power or other alternatives could face higher fixed charges.

Officials say the policy is designed to recover the growing cost of maintaining power infrastructure and paying for unused generation capacity. The government believes lower grid consumption, driven by rising solar adoption and slowing industrial activity, is putting additional pressure on the power sector. The plan has been shared with the IMF and could be introduced within the next two months.

Initially, the policy will apply to industrial consumers, with possible expansion to commercial and residential users later. The Power Division argues that industries with high sanctioned loads but low electricity usage still require costly infrastructure to remain available. Critics, however, say the move may penalise businesses for turning to cheaper energy options instead of addressing the high cost of grid electricity.

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