ISLAMABAD: Power consumers are likely to face an additional burden of Rs 47 billion, as power distribution companies (DISCOs) have approached the National Electric Power Regulatory Authority (NEPRA) to recover pending costs.
This move comes on the heels of a recent announcement by Pakistan Muslim League-Nawaz (PML-N) president Nawaz Sharif and Punjab Chief Minister Maryam Nawaz regarding a reduction of Rs 14 per unit in electricity bills for the months of August and September for consumers in Punjab and Islamabad.
Despite this relief, DISCOs have requested NEPRA to approve an increase in the power tariff to recover Rs 46.99 billion from all categories of electricity consumers. NEPRA has conducted a hearing on Monday to discuss the request and make an informed decision on whether to pass this burden onto the already strained consumers.
According to details, the additional charges sought by DISCOs cover a period from April to June of the last financial year. The breakdown of the costs includes Rs 22.86 billion for capacity payments, Rs 10.80 billion for transmission and distribution losses, Rs 7.51 billion for system usage charges and marketing fees, and Rs 4 billion for operations and maintenance.
The documents submitted by the DISCOs indicated that ten distribution companies have collectively requested Rs 46.99 billion. The breakdown includes Rs 4,700 million sought by Faisalabad Electric Supply Company (FESCO), Rs 7,682 million by Gujranwala Electric Power Company (GEPCO), Rs 5,017 million by Hyderabad Electric Supply Company (HESCO), Rs 1,339 million by Islamabad Electric Supply Company (IESCO), Rs 3,996 million by Lahore Electric Supply Company (LESCO), Rs 7,910 million by Multan Electric Power Company (MEPCO), Rs 536 million by Peshawar Electric Supply Company (PESCO), Rs 8,078 million by Quetta Electric Supply Company (QESCO), Rs 4,538 million by Sukkur Electric Power Company (SEPCO), and Rs 3,195 million by Tribal Electric Supply Company (TESCO).
These adjustments are in line with the notified mechanism for capacity charges, transmission charges, market operator fees, and variable operation and maintenance charges for the 4th quarter of FY 2023-24. Furthermore, in accordance with the Federal Government’s policy guidelines for uniform quarterly adjustments, the increase determined by NEPRA will also apply to the consumers of K-Electric.
NEPRA’s final decision on this matter will determine the extent of the additional burden on consumers, who are already grappling with high electricity costs. If approved, the increased charges will impact all government-run DISCOs as well as K-Electric, further straining the finances of consumers across the country.
