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31 December 2025
Author: Mr Asif S Kasbati (FCA, FCMA & LLB)
A. Background
1. This refers to our Important PGECs (in trail, in blue, in italic and after double line) (a) 137 of 11.11.24 about Electricity Bills 18% to 50% Saving Package for Winter (b) 141 of 25.11.24 about KE BER for Winder & Bela Hearing on 27.11.24
2. We also refer to several other PGECs including 127 of 11.10.24 about Electricity Power Termination Agreements to Public Favour due to JI, FPCCI, etc efforts
B. Updated Commentary
Further to KQU 3099 dated 16.11.24, being an important matter, we would inform you about Flat Electricity Tariff Across Industries Demanded Relief Under Winter Package Should Be Extended to SMEs as per Ms Qurrat Ul Ain, Acting President, FPCCI (Attachment 143.1).
2. Ms Qurrat Ul Ain, Acting President, FPCCI, has demanded that – while the apex body appreciates the announcement of winter package – the relief in the electricity tariff announced under it should be made available to SME as well through withdrawing the condition of 100,000 units consumption in the corresponding period of last year; and, resultantly, only applying the Rs. 26 / kWh tariff to the incremental units consumed after that threshold.
3. Ms Qurrat Ul Ain, Acting President, FPCCI, explained that SMEs and new industries in particular cannot fulfil this conditionality; therefore, they will remain disadvantaged as compared to the larger industrial units. Additionally, the government will also not get full results of its winter package in industrial production and exports as the limitations in the applicability of the winter package will create impediments in fully materializing the impetus offered for trade and industry.
4. Acting FPCCI Chief highlighted that 100 textile units are already closed in Faisalabad due to burgeoning cost of doing business and lack of ease of doing business parameters in the country. The two biggest contributors keeping the cost of doing business high in Pakistan – as compared to the regional competitors – are electricity tariffs and key policy rate of 15 percent, she added
5. Ms Qurrat Ul Ain highlighted that the core inflation clocked at 7.2 percent in October 2024; while, the key policy rate continues to be at 15 percent – representing a premium of 780 basis points (bps). She reiterated FPCCI’s demand to bring interest rate down to single digits; and, it should be done in a single policy decision in the next meeting of the monetary policy committee (MPC) meeting of the SBP
6. Mr Abdul Mohamin Khan, VP & Regional Chairman, FPCCI, raised the issue of losses booked by DISCO year after year; which are expected to be approximately Rs 600 billion in FY25. We need to plug these slippages and use the buffer for rationalizing electricity tariffs, he added.
7. Mr Aman Paracha, VP FPCCI, stressed that the government should not entertain K-electric’s efforts to get an increase in electricity tariff through their requisition in NEPRA as the business, industry and trade community of Karachi is already under a lot of stress due to rising costs and shrinking profitability. The government should resist any further increase in electricity tariff for Karachi in the broader national interest, he added.
C. Further Details & Services
Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-
Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)
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Further to KQU 3089 dated 11.11.24, being an important matter, we would inform you about Power Division's Bijli Sahulat Package (Attachment 137.1) and 'Bijli Sahulat Package' offers Rs26 per unit relief for additional usage in winter (Attachment 137.2).
In an effort to manage seasonal electricity demand and drive economic growth, Pakistan's Power Division is introducing Bijli Sahulat Package for the winter months from December 2024 to February 2025. Recognizing that electricity demand in Pakistan peaks during summer and significantly decreases in winter, this initiative aims to encourage higher consumption during the low-demand winter season by offering reduced electricity rates
A. Key Features of the Initiative
1. Lower Tariffs for Incremental Demand: A flat rate of PKR 26.07 per unit will be offered for any additional electricity demand above the benchmark historical average. This will allow industries, commercial, general services and households to save significantly compared to the prevailing tariffs
2. Economic Growth through Industrial Incentives: The government is committed to fostering increased industrial and commercial activity as a driver of economic growth. Industries that consume additional electricity, beyond a set benchmark based on their historical consumption, will benefit from a 18 to 37 percent discount on the prevailing tariff rate.
3. Examples of Cost Savings:
For instance, an industry currently paying PKR 40 per unit for 100,000 units and consuming an additional 25,000 units at PKR 26.07 per unit would reduce its average cost of electricity to PKR 37.21 per unit, achieving an average expense reduction of 7.5 percent
4. Encouragement for Capacity Expansion: This initiative encourages industries to increase production capacity while benefiting from lower average electricity costs, making their operations more cost-effective.
5. Calculation of Historical Consumption:
Historical consumption for the past three years with be higher of last year's consumption, or average weighted consumption on a rolling basis, with weights assigned as follows
(a) 50% for FY 2024
(b) 30% for FY 2023
(c) 20% for FY 2022
6. Residential Consumers' Incentives:
6.1 Households will also benefit from the discounted rate for additional winter electricity consumption, making it an attractive option for heating and other energy needs that would otherwise rely on gas.
6.2 This initiative reflects the government's commitment to innovative approaches that not only balance electricity demand across seasons but also provide economic advantages to consumers. The Power Division will continue introducing new schemes to maximize electricity usage and support Pakistan's economic growth.
6.3 Bijli Sahulat Package shall be applicable up to only 25% units over the reference benchmark consumption. Furthermore, all the incremental sales over and above 25% of the benchmark consumption shall be charged normal tariffs as notified by the Government.
| Domestic | Commercial | Industrial | |||
| Min | Max | Min | Max | Min | Max |
Base Rate | 37.49 | 52.07 | 39.53 | 48.78 | 31.79 | 41.12 |
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|
|
|
|
|
|
Rate of Incremental Use | 26.07 | 26.07 | 26.07 | 26.07 | 26.07 | 26.07 |
Savings | 11.42 | 26.00 | 13.46 | 22.71 | 5.72 | 15.05 |
Percentage (%) | 30% | 50% | 34% | 47% | 18% | 37% |
B. Further Details & Services
Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-
Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)
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1. This refers to our Important PGECs (in trail, in blue, in italic and after double line) (a) 140 of 21.11.24 about Huge 7 years' Write-Off - KE planned charging you - Action by 28.11.24 (b) 129 of 18.10.24 about Five +18 Power Companies Agreement Termination & Jamaat, etc efforts for U
2. We also refer to several other PGECs including (a) 130 of 26.10.24 about KE September FCA / FCV hearing on 31.10.24 (b) 121 of 9.9.24 about XWISCOs, etc FCA Bombs for July 2024 per NEPRA order in upcoming Bill and JI, etc (c) 118 of 30.8.24 about KE FCA Bomb of Rs 37.75 for May-June 2024 per NEPRA order in upcoming bill and Jamaat–e–Islami
B. Updated Commentary
Further to KQU 5971 dated 13.11.24, being an important matter, we would inform you about Notice Regarding Public Hearing - in the Matter of the Approval of Bid Evaluation Report (BER) submitted by KEL for 50 MW Winder and 100 MW Bela Projects at Balochistan (Attachment 141.1).
2. In pursuance of NEPRA Competitive Bidding Tariff (Approval Procedure) Regulations 2017 and Decision of the Authority dated 29.2.24, KEL has submitted the BER, for approval of the Authority.
3. NEPRA considered the BER and has decided to hold a Public Hearing in the matter on 27.11.24 (Wednesday) at 2PM which can be attended through Zoom using the following link: https://us02web.zoom.us/
Meeting ID: 858 8482 0202
4. Any person who desires to participate in the proceedings may file an intervention request within seven (07) days from the publication of this notice. Such an intervention request shall state the name and address of the person filing the same, objections and how such person is or is likely to be substantially and specifically affected by any decision in the proceedings. The intervention request may also contain the contentions of the person making the same, the relief sought and the evidence, if any, in support of the case.
5. Any person may also file the comments in the matter and the Authority, if deemed fit, may permit participation of such person into the proceedings and may also consider those comments in the final decision.
6. A copy of the BER and issues framed for hearing can be downloaded from www.nepra.org.pk/news.php
C. Further Details & Services
Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-
Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)
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