FPCCI Welcomes Cut to 12 Cents, Calls for Uniform Tariff Below 9 Cents

KARACHI (Staff Reporter): FPCCI President Atif Ikram Sheikh on Saturday welcomed the government’s move to bring down industrial power tariff from 16 cents to 12 cents in two years, but said lasting industrial growth needs a uniform rate below 9 cents for all categories.

Thanking Prime Minister Shehbaz Sharif and Power Minister Awais Leghari, Sheikh said FPCCI appreciates two new proposals – an Incremental Consumption Package and an Optional Two-Part ToU Tariff – discussed in three industry consultations.

Under the incremental package, concession applies only to units consumed above a consumer’s historical baseline, while existing load is billed at normal rates. The two-part ToU tariff comprises a fixed per-kW capacity charge plus variable per-unit charges for peak, non-solar and solar hours, aimed at shifting demand to daytime and managing the duck curve.

Sheikh said industry has conveyed reservations over the past six months, as fixed charges are high and not viable amid disrupted logistics due to war. Since industry has already shifted to solar where possible, and solar remains cheaper than grid even at proposed solar-hour rates, the scheme will fail to bring load back to the grid.

He argued benefits to one industry will be recovered from all consumers, turning one sector’s gain into another’s burden. He demanded removal of cross-subsidy on B3 and B4 consumers, who cost less to serve due to higher voltage, and said IMF should support lower industrial tariff as it lifts output and exports.