ISLAMABAD: Industrialists and traders across Pakistan on Tuesday urged the government to revise the winter power package to include net metering and increase the cap on surge consumption by 25 percent.
He warned that without these revisions, the package would fail to deliver the promised relief amid skyrocketing energy prices.
During a public hearing on the federal government’s winter package request presided over by Nepra Chairman Waseem Mukhtar, industrialists in Karachi expressed their dismay, especially over the exclusion of industries equipped with net metering systems.
He emphasized that many industries have invested heavily in setting up net metering systems to reduce their production costs. But this investment has now become ineffective due to exclusion from the package.
“Industries with net metering systems are getting 15 to 20 percent of their electricity from solar sources, while more than 80 percent comes from the national grid. Excluding them from the package negates their efforts and their potential. It fines them despite the allegations,” said an industrialist.
He also criticized the package’s limited cost-saving potential, calling Karachi’s current electricity tariff of Rs 64 per unit unsustainable. Dismissing the government’s claim of savings of up to Rs 14 per unit as misleading, representatives estimated actual savings at a rate of only Rs 4 per unit over the next three months.
In Karachi’s Korangi area, where the majority of the 4,500 factories have solarized their operations, industrialists warned that a 25 percent cap on excess electricity use would further limit benefits.
“The system will fail unless net metering industries are included,” he said, referring to the average benefit of less than Rs 4 per unit under the current package design.
“Excluding net metering industries and maintaining a low cap will only hinder the success of the package, leaving industries and consumers to struggle with rising energy costs,” warned one participant.
The hearing also revealed widespread confusion over the package’s implementation timeline.
Initially announced to cover December 2024 to February 2025, it was later clarified that the package applies to November, December and January consumption, leaving many consumers unaware. This package is already implemented.
Participants said this delay, along with unclear communication, led to a wasted month. “Consumers received December bills based on November consumption, but were not informed that the package was active,” noted one manufacturer.
A representative of Cherat Cement demanded not only inclusion of net metering industries but also increased the cap of 25% on excess consumption of electricity. “Maintaining the low cap will continue to hamper the growth of industries, while failing to reduce their energy cost burden,” he said.
K-Electric (KE), a major player in Karachi’s energy sector, has come under fire for its role in past package implementation issues. Participants urged the government to prevent KE from seeking court injunctions that could delay benefits, citing the company’s Rs32 billion debt to customers from previous packages.
KE officials assured that the current package will be implemented as per the government’s schedule, but deferred a decision on raising the cap for policymakers.
The National Electric Power Regulatory Authority (Nepra) has faced allegations of silencing or disconnecting microphones during key discussions, a practice allegedly repeated from previous hearings. Chairman Waseem Mukhtar blocked questions on technical and legal issues, frustrating the stakeholders.
The government official presenting the case to Nepra admitted an average benefit of Rs 3 to 4 per unit to consumers. Nepra said that a detailed decision will be issued after evaluating feedback from stakeholders. However, manufacturers remain skeptical about the potential impact of the package without significant modifications.