What is a wheeling charge, in simple terms
A wheeling charge is the fee paid for transporting electricity across the transmission or distribution network when power is generated at one location and consumed at another. It covers:
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Operation and maintenance of grid infrastructure
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Transmission and distribution services
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Compensation for technical losses at different voltage levels
Wheeling enables open access, allowing bulk consumers to source electricity from non-local suppliers instead of being locked into a single utility. In Pakistan, these charges have historically been high due to cross-subsidies, making industrial power more expensive and less competitive regionally.
Reducing wheeling charges does not change how electricity is generated—but it changes how costly it is to move.
Why this matters for industry and exports
For sectors such as textiles, chemicals, engineering, cement, and processing industries, electricity is a defining input cost. When power prices include layers of policy-driven distortion, export competitiveness erodes even if productivity improves.
By lowering wheeling charges:
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Industrial users see lower delivered energy costs where wheeling applies
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Cost predictability improves for long-cycle export orders
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Price parity with regional competitors becomes more attainable
This is especially relevant at a time when exporters are facing compressed margins, volatile input prices, and slower global demand.
