ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a Distribution Investment Plan (DIP) of Rs 35.514 billion for Multan Electric Power Company (MEPCO) for the 2025–29 period, significantly lower than the revised request of Rs 86.463 billion.
According to NEPRA’s determination, MEPCO submitted its DIP on October 25, 2024, for the Multi-Year Tariff (MYT) control period from FY2025-26 to FY2029-30, initially proposing a total investment of Rs 119.466 billion.
The investment plan was to be financed through the company’s own resources and loans and had been approved by MEPCO’s Board of Directors.
Subsequently, MEPCO revised the proposed investment downward to Rs 86.463 billion. However, NEPRA further reduced the approved amount to Rs 35.514 billion.
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The approved investment has been allocated as follows: Rs 5.432 billion for FY2025-26, Rs 12.428 billion for FY2026-27, Rs 9.832 billion for FY2027-28, Rs 4.108 billion for FY2028-29, and Rs 3.716 billion for FY2029-30.
NEPRA clarified that the sole authority for interpretation of this determination rests with the regulator. Any stakeholder seeking clarification must approach the Authority directly. It also warned that any expenditure incurred without explicit approval would be at the company’s own risk and cost.
The regulator directed the DISCO to ensure a zero-fatality target and maintain a safe working environment for both employees and the general public by effectively utilising the approved investment, particularly under safety-related projects.
MEPCO has been instructed to execute all approved short-term (STG) projects strictly within the sanctioned scope, timelines, and cost parameters. A contingency provision of up to three percent of the total approved project cost has been allowed to address unforeseen risks or cost escalations. However, such contingency funds cannot be used to cover poor planning, mismanagement, or deviations from approved specifications without prior approval.
The Authority further directed that while priority must be given to approved DIP projects, the DISCO may undertake alternative projects in case of operational exigencies, subject to strict conditions.
Copyright Business Recorder, 2026
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