Pakistan weighs flexible power tariff for industry

Pakistan's Power Division is considering an optional electricity tariff model for industrial users aimed at making power pricing more reflective of actual demand patterns. Under the proposal, factories would be able to choose a multi-slab structure tied to time-of-use and marginal-cost signals instead of relying on a flatter charging approach.

The ministry says the plan would combine higher fixed charges based on maximum demand indicators with variable energy prices that change across different consumption periods. Officials argue that this could encourage industries to shift operations to cheaper off-peak hours, reduce pressure on the grid during peak demand, and improve overall system efficiency.

Authorities have presented the proposal internally and are now moving toward consultations with industrial consumers, chambers of commerce and trade bodies. A first online consultative session has been scheduled for March 26, with feedback expected to shape the final design of the proposed tariff regime.