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Pakistan’s industrial sector has raised concerns over potential electricity tariff hikes, warning that rates could soar to Rs55/kWh, threatening production costs and export competitiveness.
During a recent NEPRA public hearing on interim tariff rebasing for Islamabad, Faisalabad, and Lahore distribution companies (IESCO, FESCO, LESCO) for July–December 2026, exporters opposed any increase in base tariffs. The hearing followed the federal government’s shift of the annual tariff rebasing schedule from July to January, requiring interim reviews for the mid year transition.
IESCO requested a Net Distribution Margin (NDM) of Rs26.307 billion, raising its rate from Rs3.94/kWh to Rs4.22/kWh.
FESCO sought an NDM revision to Rs3.99/kWh, up from Rs3.57/kWh.
LESCO requested Rs3.01/kWh with additional allowances for pending adjustments.
Distribution companies cited rising salaries, post-retirement benefits, maintenance, and transport costs as reasons for the proposed increases.
Industrial Sector Concerns
Industry representatives warned that electricity consumption has already dropped due to high tariffs and could decline further if rates rise. They emphasized that export oriented sectors are particularly vulnerable, noting a nearly 20% increase in electricity prices over six months, raising production costs in dollar terms and reducing global competitiveness.
NEPRA responded by considering a third-party inspection of defective meters to ensure fair billing and will finalize the interim tariff determination after reviewing both company proposals and stakeholder feedback.
