ISLAMABAD: Power distribution companies have asked the National Electric Power Regulatory Authority to approve Rs10.75 billion in additional charges under the second quarterly adjustment, potentially raising tariffs by Re0.43 per unit for consumers nationwide, including K-Electric users, according to media reports.
Nepra held a public hearing on the petition chaired by Chairman Waseem Mukhtar, where utilities argued the increase was needed to recover costs primarily linked to capacity payments between October and December 2025. Officials said Rs24.25 billion was being sought under capacity payments for the quarter. However, they also noted a reduction of roughly Rs13.5 billion in other components, including operations and maintenance costs, use-of-system charges, and the incremental package.
Representatives of the Central Power Purchasing Agency told the regulator that reference capacity payments for Oct-Dec 2025 stood at around Rs431 billion, compared with Rs459 billion during the same period a year earlier. They added that lower electricity consumption created a shortfall of about Rs24.25 billion, necessitating the proposed recovery.
Consumers criticise policy burden
The hearing drew sharp criticism from consumer representatives, who accused authorities of passing the burden of policy inefficiencies onto the public. Several participants argued that the incremental package disproportionately benefits select industries while disadvantaging others. Some also questioned the accuracy of data presented, urging Nepra to reassess the figures.
Critics warned that without meaningful growth in industrial demand, incentives would fail to deliver broader economic benefits. Meanwhile, officials informed the regulator that furnace oil-based plants would be phased out as the government shifts away from costly generation sources.
