PMO directs task force to finalise proposal for industrial electricity tariffs for telecom sector

The Prime Minister’s Office has asked a task force to complete recommendations on offering cellular operators industrial electricity rates, including how to manage the cost difference. The group, led by the Information Technology and Telecommunication secretary, is to consult the Power and Finance Divisions before submitting its proposal for federal government consideration.

The directive follows a request from Jazz, Zong, Ufone, Telenor and PTCL, which say telecom operators face commercial rates despite being classified as an industry in government policies and tax law. They report that electricity charges for telecom sites have risen about 197% since 2018, while fuel expenses increased around 300% and average revenue per user fell about 22%. Operators want industrial rates for network infrastructure, but not offices, shops or customer service centres, and say savings would support 5G, rural coverage and fibre expansion. Their estimates of higher grid use and reduced off-grid solar adoption have not been independently verified.