ISLAMABAD: The Power Distribution Companies (Discos) have sought positive QTA adjustment of Rs 1.34/kWh for third quarter (July-September) 2026 to recover additional amount of over Rs 23 billion in three months i.e. December 2026, January 2027 and February 2027.
The QTA is recovered from consumers of Discos and KE on account of capacity charges, transmission charges, variable operation and maintenance (O&M) costs, incremental units and transmission and distribution (T&D) losses.
The regulator has scheduled a public hearing for November 17, 2026, as well as online, to examine the requests and determine the admissible adjustments.
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The proposed adjustments include capacity charges, incorporating the impact of net metering and net billing units, National Grid Company (NGC)/Pakistan Market and Logistics Company (PMLTC) charges, Central Power Purchasing Agency-Guaranteed (CPPA-G) agency fee, variable O&M charges, impact of incremental units and T&D losses on fuel charges adjustment (FCA).
The aggregate quarterly adjustment sought by the XWDiscos stands at Rs 23.326 billion. However, the amount represents claims submitted by the distribution companies and will be subject to scrutiny and determination by NEPRA.
The largest component is capacity charges, including the impact of net metering and net billing units, for which the Discos have sought Rs 38.917 billion. Variable O&M charges account for Rs 5.597 billion, while the impact of T&D losses on monthly FCA has been estimated at Rs 7.790 billion.
The Discos have also sought an adjustment of Rs 272 million under UoSC and CPPA-G agency fee.
On the other hand, the impact of incremental units has been calculated at negative Rs 29.252 billion, which offsets a substantial portion of the positive claims and brings the net adjustment to Rs 23.326 billion.
The company-wise figures showed that Faisalabad Electric Supply Company (FESCO) has sought a net adjustment of Rs 10.462 billion, followed by Islamabad Electric Supply Company (IESCO) at Rs 10.535 billion and Peshawar Electric Supply Company (PESCO) at Rs 6.978 billion.
The Lahore Electric Supply Company (LESCO) has sought Rs 2.995 billion, Multan Electric Power Company (MEPCO) Rs 3.366 billion, Gujranwala Electric Power Company (GEPCO) Rs 1.637 billion and Hyderabad Electric Supply Company (HESCO) has reported a negative adjustment of Rs 2.154 billion.
The Quetta Electric Supply Company (QESCO) has sought a negative adjustment of Rs 4.088 billion, Sukkur Electric Power Company (SEPCO) negative Rs 1.051 billion, Tribal Electric Supply Company (TESCO) negative Rs 5.875 billion, while Hazara Electric Supply Company (HAZECO) has sought a positive adjustment of Rs 521 million.
The NEPRA noted that the September 2026 FCA had not been notified at the time the quarterly adjustment requests were submitted. Consequently, the Discos have calculated the impact of T&D losses on September FCA on the basis of the FCA requested by CPPA-G.
This aspect is expected to be examined during the hearing, as the regulator will assess the admissibility and justification of the claims in accordance with the applicable tariff mechanism.
The hearing will also examine the application of the third quarterly adjustment to consumers of K-Electric. According to the notice, in line with policy guidelines issued by the federal government for uniform quarterly adjustments, the adjustment determined for XWDiscos will also be applicable to K-Electric consumers.
The uniform application of quarterly adjustments is intended to maintain consistency in electricity tariff treatment across the country, although the final impact on consumers will depend on the determination issued by the NEPRA.
The regulator has invited all interested and affected parties to submit written or oral comments and objections, as permissible under the law, during the hearing.
The copies of the relevant Act, Rules, Regulations, Guidelines and adjustment requests filed by the XWDiscos have been made available on NEPRA’s website for stakeholders seeking to examine the details of the claims.
The hearing will be conducted at NEPRA Tower, Islamabad, with participation also available through Zoom. The quarterly adjustment mechanism allows distribution companies to recover or pass on certain variations in their power purchase and operational costs through electricity bills, subject to regulatory scrutiny.
Copyright Business Recorder, 2026