ISLAMABAD: Under the Winter Demand Initiative introduced by the Ministry of Energy, power consumers could see an incremental tariff of Rs26.07 per kilowatt-hour (kWh). The initiative, designed to boost electricity consumption during the low-demand winter months, has sparked concerns about affordability.
To address these concerns and gather stakeholder feedback, the National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on November 26, 2024. The hearing will evaluate the scheme’s implementation for the Financial Year 2025, targeting domestic, industrial, commercial, and general service consumers of power distribution companies (DISCOs) and K-Electric (KE).
The Winter Demand Initiative, approved by the Economic Coordination Committee (ECC) on November 19, 2024, is subsidy-neutral and will be effective from December 2024 to February 2025.
Under the initiative, electricity consumers will be charged a special tariff of Rs26.07 per kWh on additional electricity consumption exceeding a benchmark. This benchmark is calculated based on the higher of two figures: consumption recorded during the corresponding months of FY2024 or the average usage over the past three years.
The Ministry of Energy has emphasized that the initiative aims to encourage electricity usage during winter months without depending on government subsidies. However, NEPRA has raised concerns that increased electricity usage under the scheme could push fuel charges above Rs26 per unit.
NEPRA’s public hearing, accessible online and at NEPRA Tower in Islamabad, invites consumers, energy experts, and other stakeholders to provide feedback. Written comments are also welcomed prior to the hearing.
Key features of the Winter Demand Initiative include:
- Incremental Tariff: Consumers exceeding their benchmark consumption will pay Rs26.07/kWh.
- Applicability Period: The scheme spans three billing cycles from December 2024 to February 2025.
- Target Groups: Applicable to industrial users, domestic consumers (Time-of-Use and non-Time-of-Use consuming over 200 units), commercial entities, and general service users.
- Subsidy Neutrality: The program does not rely on government subsidies.
NEPRA has emphasized transparency by making relevant regulations, codes, and documents publicly available on its website. While the initiative seeks to optimize energy resource utilization during low-demand months, its success will depend on consumer participation and effective execution.
The hearing’s outcome will shape the final structure and operational strategy of the scheme, ensuring a balance between consumer benefits and the financial sustainability of the power sector. The initiative represents a critical step toward addressing seasonal energy imbalances, but its effectiveness hinges on transparent communication and proper implementation.
