Power Division Clarifies Industrial Tariff Position, Says Electricity Has Become Cheaper

The Power Division has dismissed media reports claiming that Pakistan has raised electricity tariffs for industrial consumers, clarifying that the Rs. 25.30 per unit figure circulating in reports refers to a revised marginal rate under the Incremental Consumption Package rather than the standard industrial tariff.

According to a spokesperson, the regular industrial electricity tariff has in fact declined by approximately Rs. 18.94 per unit, including taxes, when compared with the rate that applied in March 2024. The average industrial rate stood at Rs. 34.40 per kilowatt-hour in October 2026, excluding taxes, the spokesperson said.

The Power Division explained that the Incremental Consumption Package for industrial and agricultural consumers is being revised because marginal electricity generation costs have risen amid the prevailing war situation. The revised marginal rates are scheduled to take effect in November 2026, following a determination by the National Electric Power Regulatory Authority (NEPRA). The adjustment is intended to ensure that the cost of providing relief under the package is not shifted onto other electricity consumers, particularly those who do not qualify for the scheme.

The division reported that the package covered 6,940 gigawatt hours of incremental electricity consumption between December 2025 and September 2026, delivering an estimated financial benefit of Rs. 43.5 billion to consumers. Industrial consumers received discounts of Rs. 5 to Rs. 10 per unit on incremental consumption, reducing their overall electricity bills by an average of Rs. 1.5 to Rs. 2.5 per unit.

So far, 209,335 out of 518,316 eligible consumers, roughly 40 percent, have benefited from the Incremental Consumption Package. The Power Division reiterated that the revised marginal rate should not be confused with the regular industrial electricity tariff, which it said has fallen compared with March 2024.