The country’s 10 power distribution companies, collectively known as Discos, have submitted petitions to the National Electric Power Regulatory Authority (NEPRA), seeking a tariff adjustment amounting to Rs2.765 trillion for the fiscal year 2024-25.
The proposed adjustment is to cover various components of the multi-year tariff (MYT) structure, with the primary focus on the Power Purchase Price (PPP).
The Lahore Electric Supply Company (LESCO) is leading the request with a proposed adjustment of Rs852.047 billion, followed by the Faisalabad Electric Supply Company (FESCO) at Rs501.481 billion, and the Islamabad Electric Supply Company (IESCO) at Rs400.484 billion.
Other companies, including the Quetta Electric Supply Company (QESCO) and the Gujranwala Electric Power Company (GEPCO), have also filed significant claims.
These adjustments aim to address the financial demands arising from operations and maintenance costs, currency depreciation, return on rate base, gross margin adjustments, and other financial factors.
Several Discos have also proposed adjustments to employee pay and allowances.
NEPRA has scheduled public hearings for these petitions in the first week of April 2024, inviting stakeholders to present their comments or objections.
The authority intends to finalize and approve new tariffs for Discos by May 2024 at the latest, aligning with the Power Division’s commitment to the International Monetary Fund (IMF).
This commitment ensures that the new tariffs, effective from July 2024, will reflect cost recovery measures and support the management of circular debt, as emphasized by the IMF’s guidance on maintaining financial stability through timely tariff adjustments.
These adjustments are crucial to meet the financial demands of the Discos, including operations and maintenance costs, and ensuring a sustainable power supply.