ISLAMABAD: The government has announced plans to extend electricity supply incentives, currently available to Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC), to all industrial estates and zones across the country.
A revised mechanism, developed in consultation with China and approved by the Cabinet Committee on Energy (CCOE), removes regulatory barriers for power distribution companies (DISCOs) to supply electricity to zone developers under bilateral agreements. DISCOs will now be able to sell power directly to SEZ developers with supplier licences from the National Electric Power Regulatory Authority (Nepra).
The SEZ Act 2012 and SEZ Rules 2013 mandate the provision of essential utilities like gas and electricity to SEZs, but challenges such as unreliable electricity supply, delays in infrastructure development, and unclear licensing requirements have hindered progress.
Under the new plan, CPEC SEZs will remain under the service jurisdiction of their respective DISCOs. Developers will sign operation and maintenance (O&M) agreements with DISCOs for managing infrastructure, supply, billing, and collections. Industrial consumers in SEZs will benefit from a uniform tariff, with developers receiving an O&M fee approved by Nepra.
The Ministry of Industries and Production recommended extending these measures to all SEZs to ensure uniform policies and avoid anomalies. Additionally, CCOE emphasized avoiding discrimination among industrial consumers by applying the same incentive package to other industrial estates.
The government’s introduction of O&M agreements and one-window facilities aims to address overbilling complaints, reduce distribution costs, and improve electricity access in SEZs, thereby promoting industrial growth and economic activity nationwide.
Story by Zafar Bhutta
