By Staff Reporter
ISLAMABAD: The government on Monday formally notified an average reduction of Rs4.04 per unit in electricity tariffs for all industrial consumers, effective from Feb. 11, while directing the power regulator to restore contractual rights for existing net-metered solar users until the end of their seven-year agreements.
The Power Division’s notification followed Prime Minister Shehbaz Sharif’s directive last week to protect investors who had installed rooftop solar systems under earlier government incentives aimed at boosting renewables in a country battling chronic power shortages and high costs.
For the smallest industrial users, classified as B1 with loads up to 25 kilowatts, the average tariff dropped to Rs26.03 per unit from Rs30.80. This includes an off-peak rate of Rs25.48 per unit, down from Rs30.05, and a peak rate of Rs35.74, previously Rs36.74. The division also slapped a fixed charge of Rs1,000 per consumer per month on this category, aligning it with similar levies introduced for residential users last week.
Fixed charges for the other industrial categories stayed at Rs1,250 per kilowatt per month. In the B2 bracket, for connections of 25-500 kW, the average energy rate was set at Rs26.16 per unit, from Rs30.73. Off-peak rates fell to Rs22.83 from Rs27.41, while peak tariffs eased to Rs35.68 from Rs36.68. Larger B3 consumers, hooked to 11-33 kV lines, will now face an average of Rs27 per unit, down from Rs31. Their off-peak rate was cut to Rs23.67 from Rs28.24, and peak rates to Rs35.68 from Rs36.68. For the biggest B4 users on 66-132 kV lines, the average tariff was reduced to Rs26.43 from Rs30.43 per unit. Peak rates dipped to Rs35.68 from Rs36.68, though off-peak rates rose to Rs27.96 from Rs23.38.
The tariff relief comes as Pakistan’s industries grapple with some of the region’s highest power costs, which have dented export competitiveness and fuelled calls for reforms under the country’s International Monetary Fund programme.
In tandem, the Power Division asked the National Electric Power Regulatory Authority (NEPRA) to suspend the rollback of specific benefits for older prosumers – those who both produce and consume electricity – in line with the prime minister’s order. NEPRA, which had notified amendments to its Prosumers Regulations 2026 just last week, has now called for public comments within 30 days on further tweaks. These would delete subsection (2) of section 21, which had cut payback rates for legacy solar users to Rs8.13 per unit from Rs26 and moved them from net metering to net billing.
The revised clause would confirm that existing approvals, licences and agreements remain in force, keeping prosumers on the old rates and mechanisms until their contracts lapse. NEPRA’s initial rules, rolled out in February, sparked outrage from solar adopters and opposition lawmakers for overriding commitments to early investors. Sharif responded by ordering a review to safeguard those who acted on prior policies, while instructing officials to avoid shifting the burden of around 466,000 prosumers onto the broader grid.
Officials said NEPRA has held off on the disputed clauses. Rules for new prosumers, including the switch to net billing and a Rs8.13 per unit credit for exports valid for one month instead of three, will stand as announced on Feb. 9. Under the net billing setup, distribution companies purchase surplus solar power at the national average energy purchase price and charge prosumers retail rates of Rs37-55 per unit for grid imports.
The solar policy flip-flop drew fresh heat in parliament on Monday, with the National Assembly’s Standing Committee on Industries and Production grilling NEPRA over the abrupt shift from net metering to net billing. Chaired by MQM’s Syed Hafeezuddin, the panel questioned the logic of the move, which was intended to stem surging solar penetration and ease strains on the loss-making state power network.
“The policy will have serious implications for the government’s reputation,” Hafeezuddin told the committee. “When the regulator can honour the commitments made to the independent power producers, it should also respect the response by industries and individuals who availed the net metering policy introduced by the government.”
Lawmakers and officials, including the industries secretary, warned that the changes risked eroding investor confidence and slowing the uptake of clean energy by factories. “Industrial units opted for this policy and invested in solar power systems, but they have been left in a lurch after the new net billing policy was introduced,” Hafeezuddin said. He added that Pakistan must push solar and other renewables to cut long-term business costs. “Pakistan needs to promote solar and other clean energy for the industries; it will help reduce the cost of doing business on a long-term basis,” he said.
The committee’s main business was vetting development projects under the industries ministry, where it rejected several amid concerns over delays, cost overruns and weak oversight from the Planning Commission. Members including Dr Mehreen Bhutto, Abdul Hakeem Baloch and Shahid Usman challenged official briefings, pointing to gaps in details and mismatches with on-ground realities in places like Hub, Karachi and Gujranwala. Bhutto noted that many schemes had been stalled for six to nine years, hit by the COVID-19 pandemic, currency woes and political shifts. “The briefs given to the lawmakers were always incomplete – why is that the case?” she asked.
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