The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on June 13, 2025, to discuss the interim tariffs for the distribution and supply of electricity for eight power distribution companies (Discos) under the Multi-Year Tariff (MYT) regime. These companies are seeking a combined revenue requirement of over Rs 455.6 billion for the fiscal year 2025-26.
The eight Discos—GEPCO, QESCO, MEPCO, SEPCO, HESCO, PESCO, TESCO, and HAZECO—have filed tariff petitions for the five-year period from FY 2025-26 to FY 2029-30. As part of the tariff petitions, each company has outlined its specific revenue requirements, with GEPCO seeking Rs 67.821 billion, MEPCO requesting Rs 139.106 billion, and QESCO proposing Rs 50.120 billion for FY 2025-26.
For GEPCO, the revenue breakdown includes Rs 16.598 billion for pay and allowances, Rs 13.815 billion for post-retirement benefits, and Rs 4.909 billion for other expenses. The total operational and maintenance (O&M) cost for the company is projected at Rs 43.446 billion, with additional costs for depreciation, return on rate base (RORB), and prior year adjustments (PYA).
Similarly, MEPCO’s revenue requirement includes Rs 22.302 billion for pay and allowances, Rs 29.384 billion for post-retirement benefits, and Rs 7.869 billion for repair and maintenance. The O&M cost for MEPCO totals Rs 79.653 billion, with additional provisions for depreciation, RORB, and PYA.
QESCO has proposed a total revenue requirement of Rs 50.120 billion, with major expenses including Rs 9.947 billion for pay and allowances and Rs 17.100 billion for O&M costs. The company has also requested a PYA of Rs 16.298 billion.
SEPCO’s proposed revenue requirement stands at Rs 58.053 billion, with significant portions allocated to O&M costs and distribution margins. TESCO, with a smaller footprint, has requested Rs 7.303 billion, primarily for O&M expenses and supply margin costs.
PESCO’s proposed revenue requirement for FY 2025-26 is Rs 81.449 billion, with major components including Rs 37 billion for O&M expenses and Rs 52 billion for supply margins. HESCO has sought Rs 39.448 billion for the same period, with a focus on O&M costs and supply margin allocations.
HAZECO, the smallest among the Discos, has proposed a revenue requirement of Rs 12.320 billion, with key allocations for O&M expenses, depreciation, and RORB. The public hearing scheduled for June 13 will provide a platform for stakeholders to voice their opinions on these proposed tariffs and the overall impact on electricity pricing.
