The National Electric Power Regulatory Authority (NEPRA) has concluded hearings on a proposed electricity tariff revision that could significantly impact non-solar consumers. Officials from the Power Division presented a major restructuring plan designed to ease costs for the industrial sector while revisiting cross-subsidy arrangements across different consumer categories.
Under the proposed model, industrial electricity tariffs are set to decrease by Rs. 4.4 per unit. This adjustment eliminates the Rs. 101 billion cross-subsidy that the industrial sector has historically borne, marking a significant shift in Pakistan’s electricity pricing framework.
While the industrial sector stands to benefit, residential and non-solar users may face higher fixed charges or revised tariffs to balance the restructuring. NEPRA’s review aims to ensure the plan aligns with regulatory requirements while maintaining sectoral equity and sustainability.
The proposed changes are part of a broader effort to modernize Pakistan’s electricity billing system and reduce the burden on high-consumption industries without undermining overall revenue collection. Officials argue that revisiting cross-subsidy mechanisms is essential to create a more transparent and fair tariff structure.
Non-solar consumers may experience noticeable increases in their bills, as the financial burden previously shouldered by industrial users shifts toward other consumer categories. The government is expected to finalize the new billing model after NEPRA completes its regulatory assessment and consultations.
This restructuring reflects ongoing efforts to balance industrial growth with consumer protection while addressing the long-standing inequities in Pakistan’s electricity pricing system. Stakeholders are closely monitoring the development, as it could reshape household electricity costs and incentivize solar adoption.
