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, describing the revised tariff of Rs25.3 per unit as "gross injustice". He said the additional cost of supplying incremental electricity is being passed on to general consumers who have not benefited from the scheme.

In comments submitted to Nepra after a public hearing, the association argued that the financial burden arising from the package should be borne exclusively by its beneficiaries rather than being transferred to other consumers through fuel cost adjustments (FCA). According to Nepra data cited by SAI, the loss-adjusted marginal cost exceeded the previous incremental tariff of Rs22.98 per unit by Rs19.39 in April and Rs16.24 in May 2026.

These differences translated into estimated losses of Rs13.6 billion and Rs9.4 billion, respectively, which were absorbed by all consumers. Abdul Hadi said the Independent System and Market Operator (ISMO) has confirmed during the hearing that the marginal price data is accurate and that the sharp increase in costs has been unforeseen.

He recalled that Nepra's original decision had explicitly stated that any unforeseen losses will be borne only by consumers using the incremental package. The association also objected to the delay in the semi-annual review, which was due in June 2026 but was held four months later.

It argued that the delay has unnecessarily increased the financial burden on general consumers. SAI has urged Nepra either to suspend the package immediately or to apply the revised marginal cost to all incremental consumption from June 9, 2026.

It also called for the difference to be recovered solely from package beneficiaries and credited to general consumers through the next FCA or quarterly tariff adjustment (QTA). The association said other industrial bodies, including the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry, and Federal B Area Association of Trade and Industry, have also raised serious objections to the continuation of the package.

Abdul Hadi said ordinary consumers have effectively paid the difference between the marginal price and the incremental tariff through higher FCAs, despite not benefiting from the scheme. He maintained that the excess amount should be refunded to them.

He warned that the revised tariff could further increase electricity and industrial production costs, undermining the competitiveness of local industry. He urged Nepra to address all stakeholder objections on merit through reasoned decisions and introduce a clear mechanism for withdrawing schemes that fail to achieve their intended objectives.