NEPRA cuts MEPCO five-year investment plan from Rs86 billion to Rs35 billion

The National Electric Power Regulatory Authority (NEPRA) has approved a Rs35.514 billion Distribution Investment Plan (DIP) for Multan Electric Power Company (MEPCO) for the 2025-29 period, cutting it from the company’s revised request of Rs86.463 billion.

According to NEPRA’s determination, MEPCO had submitted its DIP on October 25, 2024 for the Multi-Year Tariff control period from FY2025-26 to FY2029-30. The company had initially proposed an investment plan of Rs119.466 billion, to be financed through its own resources and loans, after approval from MEPCO’s Board of Directors.

MEPCO later revised its proposed investment plan to Rs86.463 billion. NEPRA, however, approved Rs35.514 billion after reviewing the company’s submission.

The approved amount includes Rs5.432 billion for FY2025-26, Rs12.428 billion for FY2026-27, Rs9.832 billion for FY2027-28, Rs4.108 billion for FY2028-29 and Rs3.716 billion for FY2029-30.

NEPRA said the interpretation of the determination would rest solely with the regulator. It added that any stakeholder seeking clarification would have to approach the Authority directly.

The regulator also warned that any expenditure made without explicit approval would be borne by the company at its own risk and cost.

NEPRA directed MEPCO to use the approved investment to maintain a safe working environment for employees and the public. The regulator also instructed the company to work towards a zero-fatality target, particularly through safety-related projects.

MEPCO has been directed to execute all approved short-term projects within the sanctioned scope, timeline and cost limits. NEPRA allowed a contingency provision of up to 3% of the total approved project cost for unforeseen risks or cost escalations.

The Authority clarified that contingency funds cannot be used to cover poor planning, mismanagement or changes from approved specifications without prior approval.

NEPRA further said MEPCO must give priority to approved DIP projects. The company may undertake alternative projects in case of operational exigencies, but only subject to the conditions set by the regulator.