STAFF REPORT
ISLAMABAD:
The National Electric Power Regulatory Authority (NEPRA) has signaled a potential Rs1.80 per unit reduction in electricity tariffs under the Quarterly Tariff Adjustment (QTA) for the April–June 2025 quarter, offering a major financial relief of Rs53.393 billion to electricity consumers across Pakistan.
This proposal was discussed during a public hearing held at NEPRA headquarters on Monday, attended by representatives of the Central Power Purchasing Agency Guarantee Ltd (CPPA-G), various distribution companies (DISCOs), stakeholders from the business community, members of the media, and the general public.
The relief request was submitted by CPPA-G on behalf of ex-WAPDA DISCOs and is based primarily on a significant decline of Rs53.714 billion in capacity payments during the quarter. Further savings of Rs662 million were recorded due to improved transmission and distribution (T&D) efficiency. However, these were partly offset by a Rs182 million increase in operation and maintenance costs and Rs804 million in Use of System Charges and Market Operation Fees (UoSC & MoF).
NEPRA was also briefed on the broader performance of the power sector, including a Rs780 billion reduction in circular debt, which now stands at Rs1,600 billion, down from Rs2,300 billion.
According to Power Division officials, Rs200 billion of this improvement was due to better performance by DISCOs, while the shutdown of the Neelum-Jhelum Hydropower Plant had a negative impact of Rs18 billion.
Officials reported that electricity consumption across DISCOs rose by an average of 31%, with Quetta Electric Supply Company (QESCO) being the only exception, showing a decline in sales. However, NEPRA raised concerns over the claimed increase in industrial consumption, as no DISCO CEO provided a satisfactory explanation during the hearing.
It was also revealed that the government is working on direct and cross-subsidy reforms. Officials clarified that a bank loan of Rs1,275 billion taken to manage sectoral liabilities would not result in any additional surcharge for consumers.
If approved, the tariff relief will apply to all government-owned DISCOs as well as K-Electric, excluding lifeline users, prepaid customers, and electric vehicle (EV) charging stations, in line with the federal government’s uniform tariff policy.
Among DISCOs, FESCO (Rs15.03 billion), LESCO (Rs12.64 billion), and MEPCO (Rs8.47 billion) have requested the largest refunds. On the other hand, QESCO has sought a positive adjustment of Rs3.594 billion, citing increased capacity charges and O&M costs—this brings the net proposed refund to Rs53.393
