Industries asked to use more energy

As the government has blocked the solar net metering policy, it is now working on a plan to incentivise increased industrial electricity consumption, particularly during off-peak and solar energy production hours. It plans to provide cheap electricity during day time to counter solar energy consumption, which costs significantly less compared to the national grid. The plan includes installing smart meters for consumers opting for this tariff, enabling accurate measurement, setting and implementing the Time-of-Use (ToU)-based pricing mechanism. The Ministry of Energy (Power Division) held on Thursday a consultative session on the draft multi-slab ToU industrial tariff regime by bringing together key stakeholders from across Pakistan's industrial landscape. The event was attended by representatives from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association (Aptma), Lahore Chamber of Commerce and Industry (LCCI) and other leading industrial consumers. The consultative session was part of a broader, transparent and inclusive process, aimed at developing a tariff mechanism that better aligns with the needs of the industrial sector while ensuring sustainability of the power system. Engineer Syed Faizan Ali (Energy Adviser, Ministry of Energy), Ammar Habib (energy expert), Rimsha Rehan (PhD Researcher, Tariff – University of Melbourne), Abid Lodhi (MD Power Planning and Monitoring Company) and others presented key features of the new tariff package. The proposed regime is designed as an optional (opt-in) tariff for industrial consumers and will not be mandatory. It introduces a structure comprising higher fixed charges, aimed at ensuring the recovery of capacity costs, alongside three ToU slabs with comparatively lower variable energy charges. This design is intended to incentivise increased industrial electricity consumption, particularly during off-peak and solar production hours, while encouraging efficient demand-side management. Furthermore, smart meters will be installed for consumers opting for this tariff, enabling accurate measurement and implementation of the ToU-based pricing mechanism. Industrial stakeholders actively participated in the discussion and shared their observations and recommendations to further refine the proposed tariff structure in line with the ground realities. Their main observations were related to sanctioned loads, industrial types, the amount of fixed charges and the mechanism for recovery of fuel charges adjustments (FCA) and quarterly tariff adjustments (QTA). Their input focused on practical implementation, operational complexities and ensuring that the mechanism effectively supports industrial competitiveness while ensuring full cost-of-service recovery. The representatives of industrial bodies acknowledged the importance of such a consultative process and extended full support to the constructive feedback for finalising the tariff regime. The energy ministry reaffirmed the commitment to incorporating stakeholder feedback into the final design of the proposed tariff mechanism. "This consultation will continue through further sessions to ensure that the final framework is well-informed, balanced and conducive to long-term industrial growth in Pakistan." The session concluded with a shared understanding that collaborative efforts between the government and industry were essential to achieving efficient and sustainable energy future.