Govt concedes marginal power tariff surges

The Pakistani government has acknowledged that the marginal power price has risen significantly due to ongoing regional conflict, according to a public hearing convened by the National Electric Power Regulatory Authority (Nepra). This revelation came after months of hesitation from the Power Division. The average power supply cost has now increased to Rs32 per unit, up from the Rs22.98 per unit offered to industrial consumers in December 2025 under the Incremental Consumption Package.

The Power Division team, led by additional secretary Mehfooz Bhatti and Naveed Qaiser, admitted that their decision to adjust the rates retroactively from June 9 would require legal examination. The government's position was generally defensive, with Bhatti explaining that the incremental package was only announced after a year of industry demand work, but the sudden escalation of a 'war scene' made the economic fundamentals unpredictable.

Both industrial representatives and Nepra members questioned why the government did not initiate a review of the package after the six-month period and did not calculate the latest or average marginal cost. Rehan Javed, one of the industrial representatives, criticized the government for ignoring his concerns, including over 48 emails and multiple representations over several months.

He noted that the package rate remained frozen at Rs22.98, while the actual cost averaged Rs34.26 per unit. Consequently, the remaining consumers bore an additional Rs11.28 per unit, effectively subsidizing the industrial consumers who benefited from the below-cost rate. Javed and Shaikh urged the suspension of the incremental package and its adjustments starting June 9, when the legal review deadline was due to be met.