Pakistan is witnessing a notable shift in electricity consumption patterns, with the number of consumers using less than 200 units rising sharply from 9 million to 21 million, according to Federal Minister for Energy (Power Division) Awais Leghari. Speaking on Geo News’ programme “Naya Pakistan,” Leghari attributed the surge primarily to affluent households installing solar systems, allowing them to significantly reduce their grid consumption. The minister emphasized that it is not sustainable for the state to extend up to 70% electricity subsidies to such a large segment of users.
Leghari also addressed concerns over power rates, stating that industrial electricity costs in Pakistan have become more competitive compared to regional peers. He specifically refuted claims of six to seven US cents per unit rates in Bangladesh, asserting that these figures were incorrect. Highlighting broader sector reforms, he said the government is exploring the restructuring of the power sector’s debt to lower electricity rates across the board rather than focusing solely on industrial tariffs.
The minister underlined the government’s limited fiscal space for additional subsidies and proposed a rationalization of the tariff structure. This approach involves increasing fixed monthly charges while reducing per-unit costs for consumers, a move aimed at creating a more equitable distribution of electricity expenses. Recent relief measures include a Rs4.04 per unit reduction in industrial tariffs and a cut in the export refinance scheme rate from 7.5% to 4.5%, designed to provide immediate support to businesses and boost export-led growth.
In addition, the Centre has submitted proposals to the National Electric Power Regulatory Authority (Nepra) recommending downward revisions in base tariffs of up to Rs1.53 per unit for certain domestic consumers. Simultaneously, fixed monthly charges for some protected and unprotected households may increase, ranging from Rs200 to Rs675 depending on consumption levels, while higher-usage households would see reductions in fixed fees. Tariff adjustments also propose reductions in per-unit rates for consumers using between 301 and over 700 units, while low-usage unprotected and lifeline-protected consumers would see minimal changes. Nepra is scheduled to hold a public hearing on February 10, 2026, allowing stakeholders and consumers to review and comment on the proposals.
Leghari also elaborated on reforms in solar net metering and the potential transition to gross metering or net billing. Under proposed regulations, a consumer using all self-produced solar electricity could recover their investment within 18 months. For those exporting 40% of their electricity, cost recovery would extend to approximately three and a half years. Currently, with a buyback rate of Rs27 per unit, the recovery period under net metering is nearly doubled, highlighting the impact of regulatory adjustments on consumer investment decisions.
The minister’s statements signal a strategic shift in Pakistan’s energy policy, reflecting the dual goals of expanding solar adoption while ensuring sustainable fiscal management. By revising tariffs and restructuring debt, the government aims to balance affordability, industrial competitiveness, and long-term sector stability in an increasingly solar-driven market.
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