SITE demands NEPRA suspend Power Package over consumer cost burden
KARACHI (News Desk): The SITE Association of Industry (SAI) has demanded the immediate suspension of the National Electric Power Regulatory Authority’s (NEPRA) Incremental Consumption Package, alleging that general electricity consumers are bearing billions of rupees in additional costs despite not benefiting from the scheme.
In post-hearing comments submitted to NEPRA, SITE Association President Abdul Hadi said the financial burden arising from the incremental electricity package should be borne exclusively by its beneficiaries rather than being transferred to ordinary consumers through Fuel Cost Adjustments (FCA).
The association termed the revised incremental tariff of Rs25.30 per unit unjust, arguing that the existing arrangement had shifted the additional cost of electricity supply to consumers outside the package.
According to NEPRA data cited by SITE, the loss-adjusted marginal cost of electricity exceeded the previous incremental tariff of Rs22.98 per unit by Rs19.39 in April 2026 and Rs16.24 in May 2026.
The association estimated that these differentials translated into financial losses of approximately Rs13.6 billion in April and Rs9.4 billion in May, which were absorbed by the wider consumer base.
Abdul Hadi said NEPRA’s original decision had clearly stipulated that any unforeseen losses arising from the package would be borne exclusively by consumers availing the incremental electricity facility.
He also referred to proceedings of the regulatory hearing, stating that the Independent System and Market Operator (ISMO) had confirmed the accuracy of marginal price data and acknowledged that the sharp increase in costs had been unforeseen.
SITE further objected to the delay in the semi-annual review of the package, which was due in June 2026 but was conducted approximately four months later. The association argued that the delay had unnecessarily increased the financial burden on general consumers.
The industrial body has asked NEPRA to suspend the package immediately or apply the revised marginal cost to all incremental consumption from June 9, 2026, recover the resulting difference exclusively from package beneficiaries and credit the recovered amount to general consumers through subsequent FCA or Quarterly Tariff Adjustment (QTA) mechanisms.
The association maintained that consumers who had no direct benefit from the incremental electricity facility should not be required to subsidise the additional costs associated with the scheme.
Abdul Hadi warned that the revised tariff could further increase electricity expenses and industrial production costs, potentially undermining the competitiveness of the domestic industry.
He said the industrial community, including the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry (KATI) and Federal B Area Association of Trade & Industry, had also raised serious objections to the continuation of the package.
SITE urged NEPRA to examine all stakeholder objections on merit, issue reasoned findings and establish a transparent mechanism for withdrawing tariff schemes that fail to achieve their intended objectives.
The controversy has brought renewed attention to the distribution of electricity costs under special tariff arrangements, particularly whether additional financial risks should be borne by the beneficiaries of such schemes or passed on to the wider consumer base.