Govt Seeks NEPRA Nod for Rs22.98/kWh Industrial Incentive

ISLAMABAD: The federal government has stormed NEPRA with a three-year incremental consumption blitz, pitching a flat Rs22.98/kWh for industrial and agricultural users to ignite demand and maximize grid assets, with a public hearing locked for November 11, 2025.

Power Division’s motion reveals demand collapse over three years from macro shocks, shifting habits, and net metering (6,000+ MW). Industrial use plunged 14%, agricultural 47%, spawning idle capacity and tariff spikes from unrecovered fixed costs.

The incentive targets surplus solar daytime hours, no new infrastructure, reversing the death spiral. Past wins: Industrial Support Package (Nov 2020–Oct 2023) +14% sales; Bijli Sahulat (Dec 2024–Feb 2025) +10.2% peaks.

Mechanics: DISCOs and K-Electric industrial/agri users get Rs22.98/unit on incremental consumption above Dec 2023–Nov 2024 baseline. Three-year, subsidy-neutral. Positive FCAs apply; negative FCAs, QTAs, DSS exempt. Semi-annual reviews; auto-terminate on two consecutive hikes. >25% aggregate surge triggers rate review.

Filed under Sections 7/31 NEPRA Act + Rule 17, the package fuses Cabinet approval into tariff. Government vows productive sector surge, grid stability, industrial boom—fiscally neutral, IMF-aligned, reform-driven.