The Ministry of Energy (Power Division) is considering introducing an optional multi-slab time-of-use (ToU) tariff mechanism for industrial consumers, aimed at improving energy efficiency and providing cost-reflective pricing, the ministry said in a press release on Wednesday.
Under the proposed framework, industries would have the flexibility to opt into a tariff structure where electricity prices are determined based on average marginal cost signals during defined time-of-use periods.
The tariff would include two main components:
The Power Division said the mechanism is designed to encourage industrial consumers to shift operations to off-peak hours, reduce peak demand, and improve overall grid efficiency. It is also expected to support industrial competitiveness by enabling more predictable and potentially lower energy costs.
Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, has directed extensive stakeholder consultations to ensure inclusivity and effectiveness of the proposed regime. Consultations will be held with industrial consumers, chambers of commerce, and trade bodies across the country.
The first consultative conference is scheduled for Thursday, March 26, to be held online. Officials said feedback from these discussions will be incorporated to refine the mechanism before implementation.
The Power Division described the proposed reform as a key initiative to enhance industrial energy efficiency, improve the system load factor, and support sustainable industrial growth in Pakistan.