Pakistan's power regulator has raised the price of extra electricity used by factories and farms, lifting the rate under the government's Incremental Consumption Package from Rs22.98 to Rs25.30 per unit from the November billing month.

The National Electric Power Regulatory Authority (NEPRA) approved the Rs2.32 increase on a provisional basis, meaning the figure could still change after a fuller review. The new rate applies only to consumption above a customer's own past use, not to all the electricity a factory or farm consumes.

What the package does

The Incremental Consumption Package offers a reduced rate on additional grid electricity to encourage industry and agriculture to use more power from the national grid rather than from their own generation. The federal government currently provides relief of between Rs11 and Rs15 per unit to eligible industrial and agricultural consumers under the scheme, so the higher rate trims the benefit available on extra usage without removing the package itself.

NEPRA has forwarded its decision to the federal government for notification, with the new rate intended to apply from the November 2026 billing month. The package was introduced in December last year as part of the Roshan Economy Power Package, which runs until October 2028.

A split vote and strong dissent

The decision was far from unanimous. The four-member authority split two-two, and Chairman Waseem Mukhtar used his casting vote to approve the revised rate. Member Tariff Amina Ahmed and Member Development Maqsood Anwar Khan dissented, calling the Rs25.30 figure a random number without supporting evidence.

The dissenting members pointed to NEPRA's own assessment, which put the marginal cost of supplying additional electricity at Rs31.83 per unit. They argued the package should be suspended until reliable cost data is provided, warning that the cost of extra industrial consumption could otherwise fall on ordinary consumers through the fuel adjustment mechanism.

Chairman Mukhtar shared the dissenters' concerns in his written observations but opposed suspending the package at this stage. All four members held the Power Division and its subordinate bodies responsible for failing to submit revised calculations despite repeated reminders, and the regulator has set deadlines for the outstanding information, warning that failure could lead to suspension or termination of the package, or even legal proceedings.

Power Division clarification

The Power Division moved on 8 November to clarify what the decision means, saying the Rs25.30 figure is a temporary revised marginal rate for industrial and agricultural users covered by the Incremental Consumption Package, and not a general increase in the industrial electricity tariff.

According to the clarification, the revision was linked to higher marginal generation costs, which the division associated with the ongoing US-Iran war. The division said the adjustment was designed to ensure that the cost of relief provided through the package would not be transferred to other electricity consumers, and specifically said non-beneficiaries would not bear the cost of the package adjustment.

Separate fuel charge on November bills

The package decision sits alongside a separate fuel cost adjustment approved by NEPRA, which adds Rs2.37 per unit to November bills for power generated in September. The exact approved rate is Rs2.3673 per unit, lower than the Rs2.5624 per unit requested by the Central Power Purchasing Agency, and the charge is expected to raise around Rs25 billion from consumers.

Lifeline consumers, electric vehicle charging stations and consumers on prepaid tariffs are exempt from that fuel adjustment. The November charge is a one-month adjustment tied to September's fuel costs and does not change the base tariff, while distribution companies are separately seeking a quarterly tariff adjustment of Rs23.33 billion for July to September, which NEPRA will hear on 17 November.

For industry, the immediate question is whether the federal notification confirms the Rs25.30 rate and whether the Power Division supplies the cost data NEPRA has demanded. Until then, factories and farms using extra grid power face a higher bill for every additional unit, and the regulator has made clear that the package itself remains under review.