Six power distribution companies in Pakistan, known as Discos, have filed petitions with the National Electric Power Regulatory Authority (NEPRA) to raise electricity tariffs by approximately Rs5.
This increase aims to recover an estimated Rs750 billion for the 2024-25 fiscal year, attributed to adjustments in Multi-Year Tariff (MYT) components among other factors.
The companies and their respective revenue requirements are as follows:
Quetta Electric Supply Company (QESCO) at Rs236.945 billion, Gujranwala Electric Power Company (GEPCO) at Rs376.204 billion, Multan Electric Power Company (MEPCO) at Rs160.823 billion, Tribal Areas Electric Supply Company (TESCO) at Rs92.079 billion, Sukkur Electric Supply Company at Rs35.796 billion, and Peshawar Electric Supply Company (PESCO) at Rs64.244 billion.
These adjustments reflect operational and maintenance (O&M) costs, currency depreciation, returns on rate base, gross margins, and other financial considerations. The petitions also include requests for adjustments in employee compensation.
NEPRA is set to conduct public hearings on these petitions in early April 2024, while the Power Division urges all Discos to expedite their filings to ensure tariff determinations by May.
The Power Division will seek the Federal Cabinet’s approval for the revised tariffs, following which it will approach the Ministry of Law and Justice for notification.
The International Monetary Fund (IMF) has advised the government to implement these tariff adjustments promptly to maintain cost recovery, prevent Circular Debt accumulation, and protect vulnerable groups through progressive tariff structures.
