Power Division seeks World Bank support for new power tariff structure for industrial consumers

ISLAMABAD: The government is preparing a new power tariff structure to encourage industrial consumers to maximise their operations during the daytime and minimise them during peak consumption hours in the evening.

Federal Minister for Power Sardar Awais Ahmed Leghari discussed the concept with World Bank Country Director Bolormaa Amgaabazar on Thursday.

The minister said that electricity consumption in Pakistan has been steadily increasing, reflecting the success of the government’s policies.

He further said that the government is aiming to make electricity tariffs competitive so that key economic sectors can benefit.

He informed the World Bank country director that the Power Division, after assessing concessional tariffs, is currently working on Time of Use (ToU) proposals to further enhance the country’s energy competitiveness.

Leghari noted that the aim is to leverage Pakistan’s solar potential while providing concessional tariffs to industries. He added that the Power Division is currently consulting all relevant stakeholders.

The minister maintained that the Power Division is also considering major policy decisions to utilise the country’s indigenous resources for electricity generation.

He added that the current situation in the Middle East has further strengthened the government’s efforts to make use of these domestic resources.

The minister appreciated the World Bank for its continued cooperation in the energy sector and acknowledged the successful implementation of ongoing projects. He reaffirmed the government’s commitment to working closely with the bank to further strengthen Pakistan’s energy infrastructure.

Amgaabazar appreciated the Power Division’s reform agenda and reaffirmed the bank’s commitment to working with the ministry on priority areas, including tariff rationalisation, transmission and distribution networks, and renewable energy integration, an official statement said.