Nepra approves Rs77.4 billion investment plans for three Discos, cuts proposals by 39%

The National Electric Power Regulatory Authority (Nepra) has approved five-year Distribution Investment Plans (2025–2029) worth Rs77.443 billion for Gujranwala Electric Power Company, Quetta Electric Supply Company and Tribal Areas Electric Supply Company, reducing their combined proposed outlay by about 39%, Business Recorder reported. 

The three companies had collectively sought around Rs127 billion, but the regulator scaled down the investment after technical, financial and prudency reviews.

Gepco’s proposal was reduced from an initial Rs100.612 billion, later revised to Rs85.301 billion, to an approved Rs48.013 billion after scrutiny of project costs and requirements.

Qesco had requested Rs51.577 billion, later revised to Rs28.950 billion, while Tesco reduced its plan from Rs14.229 billion to Rs13.692 billion, with Nepra approving Rs7.841 billion for the latter.

The regulator said the approved figures are indicative and will serve as a basis for tariff determination, with final adjustments to be made during tariff proceedings.

Nepra has set loss reduction and efficiency benchmarks, directing Gepco to maintain transmission losses at 0.92% and technical losses at 8.85% in the initial years, and to conduct a third-party study on transmission and distribution losses within nine months starting July 2026.

Failure to complete the study within the specified timeline will result in stricter loss targets, with technical losses to be gradually reduced to 8.41% by FY2030, with financial impacts reflected in future tariff adjustments.

Nepra has instructed all three utilities to prioritise approved projects, while allowing limited flexibility to undertake alternative projects within 5% of total approved schemes and within the sanctioned investment ceiling.

The regulator also permitted duties and taxes to be treated on an actual basis subject to documentation, and allowed a contingency of up to 3% of total project cost to address unforeseen risks without covering inefficiencies.

Cost adjustments will be linked to exchange rate changes for foreign components and indexed to the national CPI for local costs, applicable only within approved timelines.

In addition, Nepra has allowed the replacement of faulty meters with static or advanced metering infrastructure systems, prioritising high-load connections and areas with existing communication networks, with compliance to international standards and integration with centralised data systems.