Power companies seek NEPRA’s approval to recoup Rs8.7bn for Q1 FY 2024-25

Consumers to face additional charges for first quarter adjustments as regulator schedules a public hearing on Discos’ petition for November 20

Power distribution companies (Discos) have approached the National Electric Power Regulatory Authority (NEPRA) for approval to recover Rs 8.7 billion from electricity consumers across Pakistan.

NEPRA has scheduled a public hearing on this petition for November 20, 2024. 

Discos have requested a tariff increase covering capacity charges, transmission charges, market fees, system usage, transmission and distribution (T&D) losses impact on fuel charges adjustment (FCA), and variable operation and maintenance charges.

The proposed recovery includes over Rs8 billion in capacity charges for private power generators for the first quarter (July to September) of fiscal year 2024-25. 

Upon NEPRA’s decision on the per-unit increase, the additional charges will also apply to K-Electric, following federal policy guidelines on uniform charges.

Discos’ petition details requests by various companies: Iesco seeks Rs1.746 billion, Gepco Rs2.66 billion, Mepco Rs14.884 billion, Pesco Rs4.02 billion, Qesco Rs2.155 billion, and Sepco Rs539 million. Conversely, Lesco, Fesco, Hesco, and Tesco will provide refunds totaling over Rs3.6 billion.

Out of the Rs8.71 billion total, Discos seek Rs8.06 billion for capacity charges, Rs1.653 billion for system usage and market fees, and Rs1.25 billion for variable O&M charges. Inefficiencies, losses, and power theft are set to be recovered from consumers, with an additional Rs1.566 billion GST burden on the adjusted amount.

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