Wednesday, Jan 14, 2026 | 24 Rajab 1447
Wednesday, Jan 14, 2026 | 24 Rajab 1447
ISLAMABAD: The Pakistan Steel Melters Association (PSMA) has requested Power Division and National Electric Power Regulatory Authority (Nepra) to waive hour charges due to weather–induced grid instability in Punjab.
In a letter to Power Minister, Sardar Awais Ahmad Khan Leghari, the PSMA said that due to the prevailing extreme foggy conditions and high humidity, the power distribution network (Discos) is experiencing frequent and unannounced tripping. This technical instability is severely impacting the steel manufacturing process, which is inherently continuous and energy-intensive.
The current weather-induced tripping results in: (i) every trip resets the melting cycle, leading to massive heat loss and solidification of raw materials within the furnace;(ii) sudden power fluctuations pose a grave risk to expensive transformers and capacitors; and (iii) frequent restarts significantly increase specific energy consumption per ton, making production economically unviable under current tariff structures.
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Currently, industrial consumers are restricted or heavily penalised during Peak Hours (5:00 pm to 9:00 pm). However, the prevailing technical constraints have rendered standard operating schedules impossible.
The PSMA proposes that the Peak Hour restriction be temporarily suspended for the steel melting industry in the affected regions for the following reasons: (i) compensation for downtime: Since mills are forced to shut down during daylight and late-night hours due to fog-related tripping, they must be allowed to utilise the 5:00 pm to 9:00 pm window without the “Peak” tariff penalty to maintain minimal production targets; (ii) allowing flexible operating hours will prevent a surge in demand during “Off-Peak” hours, which is currently causing further strain on an already fragile winter grid; and (iii) the steel sector is the backbone of the construction industry. Continued disruptions without cost relief will lead to a shortage of steel products and potential layoffs.
The PSMA requested the Nepra and Power Division to issue a directive to Discos (specifically Lesco, Gepco, Fesco, and Mepco) to waive Peak Hour surcharges and restrictions until the weather conditions stabilise. This temporary relief is essential to save the industry from a total shutdown.
Copyright Business Recorder, 2026