April-June 26: Discos seek positive adjustment to recover Rs23bn from consumers

ISLAMABAD: Power Distribution Companies (Discos) have sought a positive adjustment of up to Rs 1 per unit to recover over Rs 23.031 billion from consumers of both Discos and K-Electric (KE) for the second quarter (April–June 2026) under the Quarterly Tariff Adjustment (QTA) mechanism.

The National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on August 12, 2026 on the petition filed by the Central Power Purchasing Agency-Guaranteed (CPPA-G) on behalf of the Discos.

According to the petition, Discos— excluding TESCO and QESCO— have sought recovery of Rs 49.746 billion on account of capacity charges. However, a significant portion has been offset by negative adjustments of Rs 13.517 billion due to variable O&M charges, Use of System Charges (UoSC), Market Operator Fee (MoF), and the impact of T&D losses on monthly Fuel Charges Adjustment (FCA).

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

The break-up of capacity charges includes: FESCO Rs 9.573 billion; GEPCO Rs 7.587 billion; HESCO negative Rs 599 million; IESCO Rs 6.867 billion; LESCO Rs 10.484 billion; MEPCO Rs 9.244 billion; PESCO Rs 7.762 billion; QESCO negative Rs 3.008 billion; SEPCO Rs 3.860 billion; TESCO negative Rs 3.790 billion; and HAZECO Rs 1.766 billion.

Data submitted to Nepra shows that Islamabad Electric Supply Company (IESCO) has sought an overall positive adjustment of Rs 4.872 billion for the quarter; LESCO Rs 2.353 billion; GEPCO Rs 4.992 billion; FESCO Rs 5.358 billion; MEPCO Rs 5.070 billion; PESCO Rs 6.294 billion; SEPCO Rs 2.960 billion; and HAZECO Rs 1.239 billion. In contrast, HESCO has sought a negative adjustment of Rs 2.083 billion, QESCO Rs 3.647 billion, and TESCO Rs 4.377 billion. The cumulative net impact stands at Rs 23.031 billion.

The total negative adjustment comprises Rs 4.955 billion under variable O&M, Rs 13.517 billion under UoSC and MoF, and Rs 3.20 billion due to the impact of T&D losses on FCA.

Nepra noted that, in line with policy guidelines issued by the federal government for uniform quarterly adjustments, the QTA determined for Discos for the second quarter of CY2026 will also apply to K-Electric consumers.

During a recent public hearing on FCA, discrepancies in QTA figures for the second quarter came to light when a Nepra case officer indicated that Discos had sought over Rs 23 billion in adjustments. However, Chief Financial Officer of the Power Planning and Monitoring Company (PPMC), Naveed Qaiser, clarified that the actual impact may be lower—around Rs 17–18 billion—translating into an estimated increase of about Rs 1 per unit.

Representing the textile sector, Aamir Sheikh warned that the combined impact of QTA and FCA could raise industrial tariffs by Rs 2.5 to Rs 3 per unit—nearly a 10 percent increase. He said the industry was not opposed to tariff adjustments driven by global factors, including the Gulf conflict, but stressed the need for transparency in presenting the actual cost drivers.

Copyright Business Recorder, 2026