FPCCI seeks industry consultation before revision of incremental power package

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on the National Electric Power Regulatory Authority (Nepra) to consult industry representatives before making any changes to the Incremental Package for industrial electricity consumers.

The business community has warned that revising the package without taking major industrial stakeholders into confidence could create market distortions, undermine the intended benefits of the scheme and potentially transfer additional costs to industries that do not qualify for incremental consumption incentives.

In post-hearing comments submitted to Nepra on August 12, 2026, FPCCI said the regulator had already directed that the proposed changes to the Incremental Package should first be presented to and discussed with industry representatives before being brought back for approval.

The federation welcomed the direction, describing meaningful stakeholder participation as essential for developing a workable electricity pricing mechanism for industrial consumers.

FPCCI highlights delayed review

FPCCI also raised concerns over the failure to conduct the package’s scheduled quarterly review.

According to the federation, the Incremental Package was specifically designed to undergo a review every three months. However, no review had been conducted for approximately eight months.

The federation said the prolonged delay had created uncertainty for industrial consumers and prevented the timely identification and correction of issues within the package.

FPCCI urged Nepra to immediately carry out the overdue review and ensure that the quarterly review mechanism is followed consistently in the future.

The federation argued that regular reviews were particularly important because industrial electricity consumption, production conditions and operating costs can change significantly over time.

Major industry bodies seek participation

FPCCI requested Nepra to formally engage leading industry organisations before the next hearing on the proposed revision.

The organisations named by the federation include the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry (KATI), All Pakistan Textile Mills Association (APTMA), as well as other major chambers and industrial associations.

FPCCI said the participation of these organisations would allow the regulator to understand the practical challenges faced by different categories of industrial consumers.

It stressed that the revised package should be based on actual industrial requirements and should not discriminate against existing consumers who are unable to qualify as incremental users.

Warning against cost shifting

The federation expressed concern that changes to the package could result in an unintended transfer of costs to non-incremental industrial units.

FPCCI said any revised mechanism should ensure that incentives provided to additional electricity consumption do not create a financial burden for other consumers.

It also called for clear safeguards to ensure that only genuine incremental electricity consumers receive the benefits of the package.

According to the federation, the regulator should introduce mechanisms capable of preventing existing consumption from being presented as new or incremental demand merely to obtain preferential electricity rates.

FPCCI maintained that a transparent verification system would be necessary to protect the integrity of the package and prevent potential misuse.

Requests submitted to Nepra

In its submission, FPCCI made a series of requests to the power regulator.

The federation asked Nepra to formally consult FPCCI, KCCI, KATI, APTMA and other major industry bodies before the next hearing.

It also requested the authority to provide sufficient advance notice of the date and time of any consultation, along with an online meeting link, so that FPCCI could coordinate participation by relevant chambers, associations and industrial representatives.

The federation further sought a formal opportunity to present detailed recommendations on the proposed redesign of the Incremental Package.

It called for safeguards restricting benefits to genuine incremental units and urged Nepra to immediately conduct the quarterly review that has remained pending for the past eight months.

FPCCI also proposed making consultation with major industrial chambers and associations mandatory before any future revision or review of the Incremental Package or similar electricity pricing schemes.

Invitation to power-sector institutions

In a further effort to promote direct dialogue, FPCCI invited Nepra, the Power Planning and Monitoring Company (PPMC) and the Central Power Purchasing Agency-Guaranteed (CPPA-G) to visit its head office in Karachi.

The federation proposed holding detailed discussions with the relevant institutions in the presence of industry representatives.

FPCCI said direct engagement would provide an opportunity for all stakeholders to examine the existing mechanism, identify practical shortcomings and develop solutions based on actual operating conditions in the industrial sector.

It maintained that consultation could help bridge the gap between regulatory objectives and the realities faced by industrial consumers.

Industry seeks predictable power policy

The dispute over the Incremental Package comes amid continued concerns among industrial consumers over electricity costs, competitiveness and the predictability of power-sector policies.

For export-oriented and energy-intensive industries, electricity pricing is a major component of production costs. Business representatives have therefore repeatedly called for stable and transparent tariff mechanisms that allow companies to plan production and investment decisions.

FPCCI said any changes to the Incremental Package should balance the objective of increasing electricity consumption with the need to maintain fairness among different categories of industrial consumers.

The federation believes that a properly designed package, supported by regular reviews and meaningful industry consultation, could encourage additional industrial electricity consumption without imposing unintended costs on existing consumers.