Discos seek positive tariff adjustment to recover PKR 23bn from consumers

Power Distribution Companies (Discos) have sought a positive quarterly tariff adjustment of up to PKR 1 per unit to recover more than PKR 23.03 billion from consumers, including those served by K-Electric, for the April–June 2026 quarter under the Quarterly Tariff Adjustment (QTA) mechanism.

 

The petition, filed by the Central Power Purchasing Agency-Guaranteed (CPPA-G), will be taken up by the National Electric Power Regulatory Authority (Nepra) in a public hearing on August 12.

 

According to the filing, Discos—excluding TESCO and QESCO—have requested recovery of PKR 49.75 billion in capacity charges. However, the amount has been partly offset by negative adjustments linked to variable operation and maintenance costs, Use of System Charges (UoSC), Market Operator Fee (MoF), and transmission and distribution (T&D) loss impacts on monthly fuel charge adjustments, resulting in a net claim of PKR 23.03 billion.

 

The proposed adjustment varies across distribution companies, with IESCO, LESCO, GEPCO, FESCO, MEPCO, PESCO, SEPCO and HAZECO seeking positive adjustments, while HESCO, QESCO and TESCO have requested negative adjustments.

 

Nepra said that under the federal government's policy for uniform quarterly tariff adjustments, the QTA approved for Discos will also apply to K-Electric consumers.

 

During a recent public hearing, officials indicated the final consumer impact could be lower than initially estimated, with an expected increase of around PKR 1 per unit. Industry representatives, however, warned that the combined effect of the quarterly tariff adjustment and fuel charge adjustment could raise industrial electricity tariffs by PKR 2.5–3 per unit, urging greater transparency in the calculation of power costs.