FPCCI urges Pakistan to lower industrial power tariffs and reject disputed utility claims

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is calling for significant reforms to the country’s electricity pricing to support industrial competitiveness. FPCCI President Atif Ikram Sheikh has urged the government to reduce industrial electricity tariffs to below 9 cents per unit, noting that while rates have dropped from 16 cents to 12 cents over the last two years, current levels remain insufficient for manufacturers to compete internationally.

In a separate push for fiscal oversight, the FPCCI has requested that the National Electric Power Regulatory Authority (NEPRA) reject approximately Rs268 billion in disputed Prior-Year Adjustment (PYA) claims submitted by ten power distribution companies (Discos). The business body argues that these claims, which are part of multiyear tariff petitions for 2025-30, often lack sufficient verification or involve expenses from several years ago.

An FPCCI Energy Advisory Committee reviewed the petitions and identified significant discrepancies. For instance, Islamabad Electric Supply Company’s (IESCO) claims exceeded 212 percent of its proposed annual margin, while Sukkur Electric’s claims were 113 percent of its distribution margin. The FPCCI maintains that passing unverified costs onto consumers could hinder economic stability.