Pakistan’s export industry has asked the government to reduce wheeling charges (standard tariff charges) for using the national grid.
The industry wants to migrate to a competitive trading bilateral contract market (CTBCM) regime, making electricity cheaper to buy from independent power providers (IPPs), local media reported today.
The Central Power Purchase Agency (CPPA-G) has sought Rs. 27 per unit in wheeling charges. A textile industry rep said the export industry is already struggling due to the existing Rs. 43 per unit tariff and wants a multi-buyer system to minimize input costs and make products more competitive on a global scale.
Exporters urged the regulator to impose all-inclusive wheeling charges of 1-1.5 cents per unit on BtB electricity transactions. They also asked for a separate electricity pricing category free of cross-subsidies and stranded costs, as well as an increase in the solar net-metering rates for industrial consumers from 1MW to 5MW.
The export sector claims that a bigger cap on solar net metering will add 5,000 MW of solar energy at the point of use. It advocated for the industrial package on incremental power use, arguing that it would encourage economic activity and curb capacity payment issues.
The export industry reminded the government that the EU’s Carbon Border Adjustment Mechanism (CBAM) will go into effect in 2026, affecting textiles and apparel after 2030. Based on the emissions created across the production value chain, this system will apply an effective import charge on the country’s exports to the EU.
They added that raising the solar net-metering cap for industrial consumers to 5MW will boost the availability of sustainable energy at the point of use while incurring no cost to the government.