DISCOs & KE: Consumers to get Rs1.99 relief in June, July & August bills: Nepra

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued its detailed decision regarding a negative Quarterly Tariff Adjustment (QTA) of Rs 1.9857 per unit for DISCOs and K-Electric, which will be passed on to consumers in the bills of June, July and August 2026.

According to the decision, the Authority had determined the consumer-end tariff for calendar year 2026, including the Power Purchase Price (PPP) reference for XWDISCOs, on January 7, 2026 and communicated it to the Federal Government. Subsequently, the Federal Government filed a motion under Sections 7 and 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act), read with Rule 17 of the NEPRA Tariff Standards and Procedure Rules, 1998, seeking recommendation for a uniform consumer-end tariff. The motion was decided by NEPRA on January 12, 2026, and notified by the Federal Government on January 13, 2026.

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In line with the quarterly adjustment mechanism, DISCOs filed requests for adjustments for the first quarter (January–March) of CY 2026, citing variations in PPP, including the impact of transmission and distribution (T&D) losses. The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) later reported certain variations in capacity billing for WDISCOs, which affected the adjustment claims. Consequently, WDISCOs submitted addendums amounting to Rs 63.937 billion.

Although the quarterly adjustments are formula-based, NEPRA decided to conduct a public hearing to ensure transparency and meet the requirements of natural justice. The hearing was held on May 19, 2026, following a public notice issued on May 6, 2026. Relevant stakeholders were invited to submit comments, and all adjustment requests and addendums were uploaded on NEPRA’s website.

During the hearing, DISCOs presented their data and explained the variances underlying their claims. For determination of the first quarterly adjustment, NEPRA relied on data certified by CPPA-G.

The Authority noted that any subsequent discrepancy, error, or omission would be the responsibility of CPPA-G and would be adjusted in future quarters.

NEPRA also observed that CPPA-G had provided consolidated figures for WAPDA and PEDO instead of plant-wise details. The Authority has directed CPPA-G to ensure provision of plant-wise monthly capacity charge data for all grid-connected plants in future.

The cost of net-metered electricity exported to the grid was accounted for at Rs 25.32 per kWh, based on the notified national average PPP for the quarter. Similarly, the cost of energy procured through bilateral arrangements, excluding fuel cost, was considered as per approved rates.

Regarding T&D losses, NEPRA noted inconsistencies in methodologies adopted by DISCOs. While some used CY 2026 loss assumptions, others applied FY 2025-26 figures. Since T&D loss targets are approved on a financial-year basis, the Authority decided to use FY 2025-26 targets for the first and second quarters of CY 2026, and FY 2026-27 targets for the remaining quarters.

For the first quarter adjustment, NEPRA considered various components including capacity charges, variable O&M, use of system charges, market operator fee, and PPP impact on incremental consumption. The impact of T&D losses related to monthly fuel cost adjustments (FCAs) was calculated based on previously approved monthly decisions.

Consistent with past practice, NEPRA approved both DISCO-wise and uniform quarterly adjustment rates. The Authority has approved an overall negative adjustment of Rs 67.173 billion for the first quarter of CY 2026, translating into a reduction of Rs 1.9857 per kWh.

The relief will be passed on to consumers over a three-month period—June to August 2026 — at a uniform rate of Rs 1.9857 per kWh. However, the adjustment will not apply to lifeline consumers, incremental consumption package units, and prepaid consumers.

NEPRA has also extended the same adjustment to K-Electric consumers, in line with applicable legal and policy provisions. Accordingly, K-Electric consumers — excluding lifeline, incremental, and prepaid categories—will also receive the same relief during June to August 2026.

Copyright Business Recorder, 2026