KARACHI – The SITE Association of Industry (SAI) has urged the National Electric Power Regulatory Authority (Nepra) to immediately suspend its incremental power consumption package, saying the cost of supplying additional electricity under the scheme has been passed on to consumers who did not benefit from it.
In comments submitted after a Nepra hearing, SAI President Abdul Hadi said the revised tariff of Rs25.30 per unit would leave other consumers bearing part of the cost through fuel cost adjustments. He said any shortfall should be recovered from consumers availing themselves of the package.
Citing Nepra data, the association said the marginal cost of supplying additional electricity, after accounting for system losses, exceeded the previous package rate of Rs22.98 per unit by Rs19.39 in April and Rs16.24 in May 2026. It said the resulting shortfalls of about Rs13.6 billion in April and Rs9.4 billion in May were passed on to the wider consumer base.
Mr Hadi said the Independent System and Market Operator had confirmed at the hearing that the marginal cost figures were accurate and that the increase had been unforeseen. He said Nepra’s original decision stipulated that any unforeseen losses would be borne solely by beneficiaries of the package.
The association also objected to a four-month delay in the semi-annual review, which was due in June. It said the delay had added to the burden on consumers outside the scheme.
If the package continues, the SAI asked Nepra to apply the revised marginal cost to all incremental consumption from June 9, 2026, recover the difference from beneficiaries and credit the amount to other consumers through the next fuel cost or quarterly tariff adjustment.
The SAI said the Karachi Chamber of Commerce and Industry, the Korangi Association of Trade and Industry and the Federal B Area Association of Trade and Industry had also objected to the package’s continuation. Mr Hadi warned that higher electricity costs could raise production expenses and weaken the competitiveness of local industry.
