ISLAMABAD: Electricity consumers are likely to receive relief of around Rs 1.70 per unit in tariffs, as Power Distribution Companies (Discos) have sought a negative adjustment of approximately Rs 64 billion for the first quarter (January–March) of the current fiscal year 2025–26.
National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on May 19, 2026, on a petition filed by the Central Power Purchasing Agency–Guaranteed (CPPA-G) on behalf of the Discos.
The Quarterly Tariff Adjustment (QTA) will also be applicable to consumers of K-Electric.
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Of the total requested negative adjustment of Rs 63.939 billion, Rs 36.837 billion pertains to capacity charges, which remain one of the main drivers behind increases in QTAs and base tariffs. Despite negotiated settlements with Independent Power Producers (IPPs) and government-owned power plants, including nuclear facilities, capacity payments continue to be a major concern for consumers.
Another key issue for both the government and consumers is the high level of losses and low recovery rates of Discos, a concern consistently highlighted in the annual State of Industry Report issued by the Nepra.
According to data submitted to Nepra, the distribution-wise breakup of the requested negative adjustments is as follows: Islamabad Electric Supply Company (IESCO), Rs 6.371 billion; Lahore Electric Supply Company (Lesco), Rs 7.907 billion; Gujranwala Electric Power Company (Gepco), Rs 5.080 billion; Faisalabad Electric Supply Company (Fesco), Rs 10.450 billion; Multan Electric Power Company (Mepco), Rs 6.342 billion; Peshawar Electric Supply Company (Pesco), Rs 8.629 billion; Hyderabad Electric Supply Company (Hesco), Rs 10.140 billion; Quetta Electric Supply Company (Qesco), Rs 2.595 billion; Sukkur Electric Supply Company (Sepco), Rs 2.914 billion; Tribal Electric Supply Company (Tesco), Rs 3.013 billion; and Hazara Electric Supply Company (Hazeco), Rs 495 million.
The total requested amount for variable operation and maintenance (O&M) stands at a positive Rs 4.876 billion. Use of System Charges (UoSC) and Market Operator Fee (MOP) reflect a negative adjustment of Rs 11.243 billion, while the impact of transmission and distribution (T&D) losses on monthly Fuel Charges Adjustment (FCA) is estimated at a positive Rs 2.777 billion. However, the impact of incremental units is projected to result in a negative adjustment of Rs 23.510 billion.
Prime Minister Shehbaz Sharif and Minister for Power Sardar Awais Ahmad Khan Leghari are holding regular meetings to improve the performance of Discos and the National Grid Company (NGC). However, progress remains slow. The Power Division has also shared revised improvement plans with the Prime Minister and the International Monetary Fund (IMF).
Copyright Business Recorder, 2026