Iesco stood on top in the wake of its plausible performance to curb losses, improve recoveries and act in line with the time frame for new connections. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) on Tuesday held a public hearing on the second quarterly adjustment for the current fiscal year, where power distribution companies (DISCOs) sought additional charges of Rs10.76 billion that could translate into a nationwide tariff hike of 43 paisa per unit, including K-Electric. Electricity companies pressed for recovery of costs mainly linked to the capacity payments made between October and December 2025.
Officials told the regulator that Rs24.25 billion was being sought under capacity payments for the Oct-Dec quarter. However, Nepra was also informed of a reduction of about Rs13.5 billion in other components, including operations and maintenance, use-of-system charges and the so-called incremental consumption package.
Nepra officials said the net impact of the adjustment could result in a tariff increase of 43 paisa per unit, but stressed that the authority would review the figures before making a final decision. Any determination will be applicable to consumers across the country.
The hearing drew strong criticism from consumer representatives, who accused the government of shifting the burden of flawed policies on to the general public. Several participants said the incremental consumption package was benefiting selective industries while harming others, arguing that the data shared under the scheme was misleading.
“Without real growth in industrial demand, how can consumers benefit from such incentives?” a hearing participant asked, urging Nepra to reassess the figures submitted by the Central Power Purchasing Agency (CPPA).
CPPA officials said around Rs431 billion in capacity payments would be required for the quarter, compared with Rs459 billion needed by distribution companies in the previous year. Of the total capacity payments to the independent power producers (IPPs), there was a shortfall of Rs24 billion due to low electricity consumption, which would be recovered from the consumers. They also told the regulator that furnace oil-based power plants would not be operated in the future as the government shifted away from costly generation sources.