The Ministry of Energy (Power Division) is seeking a review of the incremental consumption package following public hearings held by Nepra on Monday. Previously, the package fixed a tariff of 22.98 per kilowatt-hour for industrial and agricultural consumers, a decision formally notified on 10 December 2025.
However, average marginal costs surpassed the announced 22.98/kWh rate across several months. Specifically, the weighted average marginal cost reached 27.58/kWh between December and May.
Furthermore, the loss-adjusted marginal cost weighted average stood at 31.83/kWh. During April, the average marginal cost climbed to 36.71/kWh, while the loss-adjusted cost rose to 42.37/kWh.
Experts noted that a review is required when combined industrial and agricultural consumption exceeds 25% above the baseline. Consumption figures showed significant monthly increases, with January recording a growth of 25.13% and February registering a rise of 26.20%.
April marked the peak monthly growth, reaching 34.81%. Intervener Rehan Javed called for revising the rate to match the actual marginal cost, effective from June 2026.
Mr. Javed also requested the refunding of the marginal price charged to non-beneficiary consumers starting in June 2026. Amir Sheikh claimed the package increases the cross-subsidy cost for domestic and commercial users.
Sheikh asserted that suspending the package represents the only fair and sound decision. Break-even prices were calculated for different consumer groups: 31.15/kWh for B1 peak consumers, 29.05/kWh for B2 Time-of-Use consumers, and 30.03, 29.62, and 32.91 per kWh for B3, B4, and B5 categories, respectively.
