In a significant move to boost industrial and agricultural productivity, the government has announced a reduction in electricity rates for excess consumption. The National Electric Power Regulatory Authority (Nepra) approved the request to lower rates, offering substantial relief for both sectors.
New Rates for Excess Power Consumption
Under the revised structure, industrial and agricultural consumers will now pay Rs22.98 per unit for electricity consumed above previous usage levels. Previously, industrial users were charged Rs34 per unit, while agricultural consumers paid Rs38 per unit. The new rates directly benefit those exceeding last year’s consumption, reducing operational costs.
For instance, an agricultural consumer who previously consumed 100 units will now save Rs7 per unit on an additional 100 units. Similarly, an industrial consumer with 1,000 units of extra usage will see a reduction of around Rs5 per unit. These measures aim to encourage higher productivity while keeping costs manageable.
Focus on Industrial Growth and Employment
Federal Minister for Power, Awais Leghari, highlighted that this concession will support production activities and create new employment opportunities. He also noted that greenfield industries, including data centers and cryptocurrency mining operations, will benefit from the reduced electricity costs.
The three-year electricity relief package allows industries to plan strategically for future expansion. Moreover, it ensures that the benefits are sector-specific, with domestic and commercial consumers unaffected by the revised tariffs.
Background and Implications
The decision comes amid broader government efforts to provide electricity tariff relief to industries and agriculture. Earlier, the Central Power Purchasing Agency (CPPA) proposed setting the national power purchase price between Rs25.69 and Rs26.69 per unit for fiscal year 2026. While this could increase overall energy costs, the recent reductions for excess consumption provide targeted relief for key economic sectors.
Nepra’s approval ensures that industrial and agricultural consumers can optimize operations without the burden of higher utility costs. Additionally, the package is expected to stimulate economic activity, support job creation, and enhance competitiveness in both domestic and international markets.
Strategic Benefits
By lowering rates for excess power consumption, the government promotes investment in agriculture and industry. Companies can now expand production, adopt modern technologies, and improve efficiency. The move also positions Pakistan to attract foreign and domestic investors by reducing operational costs in energy-intensive sectors.
Overall, this electricity rate reduction represents a careful balance between maintaining revenue streams and supporting sectors critical to Pakistan’s economic growth.
