Pakistan’s industrial and agricultural electricity consumers may face higher costs for additional electricity consumption after the National Electric Power Regulatory Authority (NEPRA) approved an increase in the discounted tariff under the government’s special relief package. The decision has been forwarded to the federal government for notification, while the Power Division has clarified that regular electricity tariffs remain unchanged.
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved an increase in the discounted electricity rate offered to industrial and agricultural consumers under the government’s incremental electricity consumption package.
According to a report published on November 7, 2026, the proposed adjustment will reduce the financial relief available to businesses and agricultural consumers who use additional electricity beyond their normal consumption levels.
Under the proposed revision, the discounted electricity rate will increase from Rs22.98 to Rs25.23 per unit.
This represents a difference of Rs2.25 per unit based on the reported rates, although the original report separately mentions an increase of Rs2.32 per unit.
The exact increase will require confirmation through the official notification.
NEPRA has forwarded its decision to the federal government for the issuance of a formal notification.
The revised rate has been proposed for implementation from the November 2026 billing month.
However, the final implementation date and applicable conditions will become clear after the federal government issues the notification.
The proposed adjustment does not apply to the entire electricity consumption of industrial and agricultural users.
Instead, it concerns additional electricity consumed under the special discounted package introduced to encourage higher electricity usage in productive sectors.
The government introduced the incremental electricity package to support industrial activity, encourage agricultural production, and make better use of available electricity generation capacity.
Under the existing arrangement, eligible industrial and agricultural consumers have been receiving relief ranging from Rs11 to Rs15 per unit on additional electricity consumption, according to the report.
The package was designed to encourage factories, manufacturing units, and agricultural operations to increase their electricity usage by offering discounted rates.
However, rising electricity generation costs have prompted authorities to reconsider the level of financial support provided under the scheme.
An important aspect of NEPRA’s latest decision is that it was not unanimously supported by all members of the authority.
According to the report, the decision was approved through the chairman’s casting vote.
Two NEPRA members, Amina Ahmed and Maqsood Anwar Khan, submitted dissenting notes expressing reservations about the proposed tariff.
The dissenting members reportedly questioned the justification for setting the discounted electricity rate at Rs25.23 per unit.
Their objections highlight differences within the regulatory authority over the calculation and justification of the proposed adjustment.
Meanwhile, the Power Division has issued a clarification regarding the decision.
According to its spokesperson, the federal government has not changed the regular electricity tariffs applicable to industrial and agricultural consumers.
The proposed increase applies only to additional electricity consumption under the incremental relief package.
This distinction is important because the decision does not represent a general increase in electricity rates for all industrial and agricultural units.
Instead, it reduces the discount available to consumers who qualify for the special package and consume additional electricity.
The Power Division explained that rising fuel prices in international markets have increased the cost of electricity generation.
Officials also linked the proposed adjustment to regional tensions that have affected energy markets and contributed to higher fuel costs.
Pakistan generates electricity through several sources, including hydropower, natural gas, coal, imported fuels, nuclear energy, and renewable energy.
Changes in international fuel prices can influence electricity generation costs, particularly when imported energy sources are involved.
According to the Power Division, the proposed adjustment aims to manage these additional costs without transferring an excessive financial burden to other electricity consumers.
The government maintains that the discounted package will continue to provide support to eligible industrial and agricultural users, although the financial benefit may be reduced.
The Power Division also released figures showing the impact of the incremental electricity package.
According to official data cited in the report, approximately 209,335 industrial and agricultural consumers benefited from the scheme by September 2026.
The total number of eligible consumers stood at 518,316.
This means that approximately 40 percent of eligible consumers took advantage of the discounted electricity arrangement.
The figures indicate that the package attracted substantial participation from businesses and agricultural consumers seeking to reduce their electricity costs.
Officials also reported that approximately 6,940 gigawatt-hours of additional electricity were consumed under the package between December 2025 and September 2026.
This represents a significant volume of electricity consumption associated with the incentive scheme.
According to the Power Division, industrial and agricultural consumers received approximately Rs43.5 billion in financial relief during the reported period.
The government stated that industrial consumers benefited from discounts ranging from Rs5 to Rs10 per unit on additional electricity consumption.
The scheme reportedly reduced overall electricity bills by an average of Rs1.50 to Rs2.50 per unit for participating consumers.
These figures suggest that the package helped eligible businesses and agricultural users lower their electricity expenses while encouraging additional consumption.
However, the proposed increase in the discounted tariff may reduce some of those savings.
For example, if an industrial consumer uses 10,000 additional units of electricity under the special package in a month, an increase of Rs2.25 per unit would raise the cost of that additional consumption by approximately Rs22,500.
Similarly, a factory consuming 100,000 additional units under the package could face an increase of approximately Rs225,000.
These calculations are illustrative and are based only on the difference between the reported discounted rates.
Actual electricity bills may vary depending on applicable taxes, surcharges, eligibility conditions, and other billing adjustments.
Electricity is one of the major operating expenses for many industries in Pakistan.
Manufacturing businesses depend on reliable and affordable electricity to operate machinery, maintain production schedules, and control operating costs.
An increase in electricity expenses can affect production costs, particularly for energy-intensive industries.
Businesses that consume large quantities of electricity may experience a greater financial impact from changes in discounted rates.
The agricultural sector also depends on electricity for several important activities, including irrigation and the operation of electric tube wells.
For farmers using electricity-powered irrigation systems, changes in electricity costs can influence agricultural expenses.
However, the actual impact of the proposed adjustment will depend on how much additional electricity each consumer uses under the package.
The Power Division has emphasized that the government is not withdrawing the entire relief scheme.
Instead, the proposed revision is intended to adjust the discounted rate in response to changes in electricity generation costs.
The government believes that maintaining a balance between consumer relief and the financial sustainability of the power sector is necessary.
Nevertheless, the decision comes at a time when energy prices remain an important concern for Pakistan’s industrial and agricultural sectors.
Businesses are already managing various operating expenses, including raw materials, transportation, labor, and energy.
Any increase in electricity costs may influence financial planning and production decisions.
For agricultural consumers, affordable electricity can play an important role in supporting irrigation and farming activities.
The proposed revision may therefore attract attention from industrial associations, agricultural representatives, and businesses benefiting from the existing scheme.
The next step will be the issuance of an official notification by the federal government.
Once the notification is issued, consumers will have greater clarity regarding the final tariff, implementation date, and conditions of the revised package.
Until then, the reported increase should be treated as an approved regulatory adjustment awaiting formal government notification.
The Power Division has reiterated that regular industrial and agricultural electricity tariffs have not been changed through this decision.
The proposed increase is limited to additional electricity consumption under the discounted incremental package.
The latest development raises an important question about whether industrial and agricultural consumers will continue increasing their electricity usage after the reduction in financial relief.
The answer will depend on the final tariff, electricity demand, production requirements, and the financial benefits that remain available under the scheme.
For now, NEPRA’s decision represents an important development in Pakistan’s electricity pricing policy, particularly for sectors that depend on affordable energy to support production and economic activity.
The government’s final notification and the response of participating consumers will determine the practical impact of the revised discounted tariff.