SITE Industrialists Demand Suspension of NEPRA’s Incremental Consumption Package
Abdul Hadi calls the revised Rs25.30 per-unit tariff unjust, urging NEPRA to recover additional costs only from consumers benefiting from the scheme.
SITE Association of Industry challenges NEPRA's revised incremental electricity tariff.
The SITE Association of Industry (SAI) has demanded the immediate suspension of the National Electric Power Regulatory Authority’s (NEPRA) Incremental Consumption Package.
SAI President Abdul Hadi described the revised tariff of Rs25.30 per unit as a “gross injustice”. He argued that the scheme shifts additional electricity supply costs onto general consumers who have not benefited from it.
In post-hearing comments submitted to NEPRA, the association insisted that beneficiaries alone should bear the financial burden. It opposed recovering these costs from the wider consumer base through Fuel Cost Adjustments (FCA).
Industrialists Challenge Additional Electricity Costs
According to NEPRA data cited by SAI, the loss-adjusted marginal cost exceeded the previous incremental tariff of Rs22.98 per unit.
The difference reached Rs19.39 per unit in April 2026 and Rs16.24 in May. SAI estimated that these gaps generated losses of approximately Rs13.6 billion and Rs9.4 billion, respectively.
The association said general electricity consumers absorbed these losses.
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Abdul Hadi noted that the Independent System and Market Operator (ISMO) had confirmed during the hearing that the marginal price data was accurate. ISMO also acknowledged that the sharp increase in costs had been unforeseen.
He recalled that NEPRA’s original decision stated that consumers using the incremental package alone would bear any unforeseen losses.
SAI Objects to Delayed Review
The association also questioned the delay in NEPRA’s semi-annual review.
The review was due in June 2026 but took place four months later. SAI argued that the delay unnecessarily increased the financial burden on general consumers.
The association has proposed two measures to address the issue. It wants NEPRA to suspend the package immediately or apply the revised marginal cost to all incremental consumption from June 9, 2026.
Under the second proposal, authorities should recover the difference exclusively from package beneficiaries. They should then credit the recovered amount to general consumers through the next FCA or Quarterly Tariff Adjustment (QTA).
Industrial Bodies Raise Concerns
SAI said several industrial organisations had also objected to the package’s continuation.
These include the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry (KATI), and Federal B Area Association of Trade & Industry.
Abdul Hadi maintained that ordinary consumers had effectively paid higher FCAs to cover the difference between marginal electricity costs and the incremental tariff.
He called for refunds to consumers who had borne these additional charges without benefiting from the scheme.
Higher Tariffs Could Affect Industrial Competitiveness
The SAI president warned that the revised tariff could further increase electricity bills and industrial production costs.
He said higher energy expenses could weaken the competitiveness of local industries and add pressure to businesses already facing operating costs.
Abdul Hadi urged NEPRA to examine every stakeholder objection on merit and issue reasoned decisions.
He also called for a clear mechanism to withdraw schemes that fail to achieve their intended objectives.
