KARACHI: SITE Association of Industry (SAI) President Abdul Hadi has called for the immediate suspension of the National Electric Power Regulatory Authority's (NEPRA) Incremental Consumption Package, criticizing the revised tariff of Rs25.30 per unit. Hadi argues that the additional costs of providing incremental electricity are unjustly being passed on to general consumers who have not benefited from the scheme.

According to SITE Association of Industry's press release, the association has submitted post-hearing comments to NEPRA, emphasizing that the financial burden from the package should be carried solely by its beneficiaries, not the broader consumer base through Fuel Cost Adjustments (FCA). NEPRA's data, as cited by SAI, shows that the loss-adjusted marginal cost exceeded the previous incremental tariff by Rs19.39 in April and Rs16.24 in May 2026, resulting in losses roughly amounting to Rs13.6 billion and Rs9.4 billion, respectively, which were borne by all consumers.

Abdul Hadi noted that the Independent System and Market Operator (ISMO) confirmed the accuracy of the marginal price data during the hearing, acknowledging the unforeseen rise in costs. He pointed out that NEPRA's original decision specified that unexpected losses would be covered only by consumers benefiting from the incremental package.

The association also criticized the delay in the semi-annual review, which was scheduled for June 2026 but occurred four months later, arguing this delay unnecessarily increased the burden on general consumers. SAI has urged NEPRA to either suspend the package immediately or apply the revised marginal cost to all incremental consumption from June 9, 2026, and recover the difference solely from package beneficiaries, crediting the recovered amount to general consumers through the next FCA/QTA.

The industrial community, including the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry, and Federal B Area Association of Trade & Industry, has voiced significant objections to the package's continuation. Abdul Hadi warned that the revised tariff could further escalate electricity costs and industrial production expenses, threatening the competitiveness of local industry. He called on NEPRA to address every stakeholder objection with reasoned findings and to establish a clear mechanism for repealing schemes that do not meet their objectives.