Consumers of KE, others: Govt to pass on Rs53.4bn relief under QTA for Q4’25

ISLAMABAD: The federal government is set to pass on financial relief of Rs 53.4 billion to electricity consumers across the country, including those served by K-Electric, under the Quarterly Tariff Adjustment (QTA) mechanism for the fourth quarter of the fiscal year 2024–25.

If implemented in the billing months of August, September, and October 2025, the relief will translate into a reduction of Rs 1.75 per unit. However, if applied during September, October, and November, 2025 the relief will increase to Rs 2.10 per unit.

National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a public hearing on August 4, 2025, on a petition filed by the Central Power Purchasing Agency – Guaranteed (CPPA-G) on behalf of distribution companies (Discos).

QTA & MTA: Nepra cuts tariffs for Discos and KE

The petition seeks a negative adjustment of Rs 53.393 billion, mainly due to reduced capacity payments resulting from Negotiated Settlement Agreements (NSAs) between the Government of Pakistan and Independent Power Producers (IPPs) or Government Power Plants (GPPs).

According to data shared with Nepra, Islamabad Electric Supply Company (IESCO) has sought negative adjustment of Rs 1.040 billion for fourth quarter; Lahore Electric Supply Company (LESCO) Rs 12.758 billion, Gujranwala Electric Power Company (GEPCO) Rs 6.132 billion , Faisalabad Electric Supply Company (FESCO) Rs 15.579 billion, Multan Electric Power Company (MEPCO) Rs 8.457 billion, Peshawar Electric Supply Company (PESCO) Rs 2.7 billion, Hyderabad Electric Supply Company (HESCO) Rs 6.818 billion, Quetta Electric Quetta Supply Company (QESCO) positive Rs 3.594 billion, Sukkur Electric Supply Company (SEPCO) Rs 504 million and Tribal Electric Supply Company (TESCO) - Rs 2.985 billion. The total requested amount for variable O&M is 182 million, Use of System Charges (UoSC) and Market Operator Fee (MOP) Rs 804 million and impact of incremental units negative Rs 662 million.

According to Nepra, in the light of policy guidelines issued by the federal government for application of uniform quarterly adjustments, Discos fourth quarterly adjustment for FY 2024-25to be determined by the Authority, shall also be applicable on the consumers of K-Electric.

Copyright Business Recorder, 2025