ISLAMABAD: Pakistan's electricity consumers are likely to receive a relief of Rs1.75 per unit as ex-Wapda power distribution companies (Discos) have sought NEPRA's approval for refunding Rs64 billion to consumers on account of quarterly tariff adjustment.
Savings Reported by Discos
In a petition filed with NEPRA, Discos have reported a saving of Rs63.936 billion during the first quarter (January-March) of calendar year 2026, mainly due to a cutback of Rs36.836 billion on account of capacity payments. Under the revised annual tariff rebasing mechanism, the government had switched from fiscal year to a calendar-year basis, with effect from January 1, 2026.
Details of Adjustments Sought
Discos sought adjustments on account of capacity charges, variable O&M charges, use of system charges and market operator fee, impact of T&D losses on monthly FCA, and impact of incremental consumption package for the first quarter (January to March) of CY2026.
- The total negative impact of capacity charges comes to about Rs36.836 billion for the first quarter.
- Rs23.5 billion impact of the incremental package.
- Rs11.24 billion savings reported from the service charge and market operator fee.
However, the savings are partly offset by Rs4.876 billion in higher operations and maintenance costs and Rs2.8 billion on account of system losses' impact on monthly fuel cost adjustments (FCAs), bringing net savings for consumers to Rs63.937 billion.
Company-wise Savings
All the Discos have sought a negative QTA charge for the first quarter of CY2026. The Faisalabad Electric Supply Company claimed the highest savings of Rs10.45 billion, followed by Hyderabad Electric Supply Company with Rs10.14 billion, Peshawar Electric Supply Company Rs8.63 billion, Lahore Electric Supply Company with Rs7.9 billion, Islamabad Electric Supply Company Rs6.37 billion, Multan Electric Supply Company Rs6.33 billion, Gujranwala Electric Supply Company with Rs5.1 billion, Tribal Electric Supply Company Rs3.013 billion, Sukkur Electric Supply Company Rs2.914 billion, Quetta Electric Supply Company Rs2.595 billion, and Hazara Electric Supply Company Rs495 million.
Public Hearing and Impact
NEPRA has set a public hearing on the Discos petition on May 19. If approved, the refund is estimated to result in a negative QTA of about Rs1.75 per unit for three billing months and it will apply to all consumers of Discos and K-Electric.
It was worth noting that for the previous quarter of October to December, NEPRA allowed a positive QTA of Rs10.8 billion, which had burdened the country's electricity consumers with an additional Re0.42 per unit for three months. Similarly, for the first quarter of the ongoing fiscal year 2025-26, NEPRA had allowed Discos and K-Electric to charge an additional Re0.33 per unit (Rs6.07 billion) from consumers on account of the quarterly adjustments.
