Islamabad (Turkey News): The Ministry of Energy (Power Division) is considering introducing a new optional Multi-Tariff Time-of-Use (ToU) system to facilitate industrial consumers and promote efficient electricity usage. The system is being developed under the guidance of Federal Minister Sardar Owais Ahmed Khan Laghari following several internal consultations and technical meetings.
Under the proposed framework, industrial consumers will have the option to join a multi-slab tariff structure, where electricity prices will be set at different times based on the average marginal cost to better reflect the actual cost of electricity. The tariff will have two main components: fixed charges, determined based on peak demand indicators to encourage consumers to reduce peak usage, and variable energy charges, adjusted according to real energy costs.
The new system is expected to provide multiple benefits for the industrial sector, including promoting electricity usage during low-cost periods to improve load management, encouraging off-peak consumption, reducing grid stress, and limiting the need for expensive capacity additions. Additionally, it is expected to improve industrial production, competitiveness, and predictability of energy expenses.
The Federal Minister directed that broad consultations with industrial consumers, chambers of commerce, and other trade organizations be conducted to make the system effective and comprehensive. The first consultation meeting is scheduled to be held online on March 26.
