Power Companies Seek PKR 34 Billion Recovery from Consumers

Pakistan’s power distribution companies (DISCOs) have sought approval to pass on around PKR34 billion in additional costs to consumers, largely linked to capacity payments for idle power plants.

 

The request was presented to NEPRA for the second quarter of 2026, with DISCOs seeking a total adjustment of PKR33.78 billion. The amount includes PKR46.38 billion in capacity charges, PKR4.97 billion in variable operation and maintenance costs, and PKR3.08 billion related to transmission and distribution losses.

 

The impact of these costs was partly offset by PKR13.52 billion in use-of-system charges and PKR21.18 billion under the incremental consumption package.

 

Meanwhile, DISCOs reported a significant decline in residential electricity sales as more consumers shifted toward solar power. QESCO has largely moved agricultural tube wells to solar, while MEPCO reported that nearly half of its tube wells have adopted solar energy.

 

DISCO officials also acknowledged that lower demand from solarisation has contributed to nighttime load-shedding, as utilities struggle to sell expensive electricity at lower tariffs.

 

Among the DISCOs, SEPCO sought the largest net adjustment of PKR13.72 billion, followed by PESCO at PKR6.29 billion and FESCO at PKR5.36 billion.

 

Industry representatives opposed any increase in electricity tariffs, warning that higher power costs would further strain businesses amid regional economic pressures.