Ten power Distribution Companies (Discos) in Pakistan have submitted petitions to the National Electric Power Regulatory Authority (NEPRA) seeking a significant tariff adjustment totaling Rs2.765 trillion for various components of the tariff for the fiscal year 2024-25 under the multi-Year Tariff (MYT) framework.
The petitions, filed by companies such as Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Islamabad Electric Supply Company (IESCO), Quetta Electric Supply Company (QESCO), Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO), Tribal Areas Electric Supply Company (TESCO), Sukkur Electric Supply Company, and Peshawar Electric Supply Company (Pesco), outline adjustments primarily related to Power Purchase Price (PPP), Operation and Maintenance (O&M) costs, currency depreciation, Return on Rate base, Gross Margin, other income, net margin, and Prior Year Adjustment.
LESCO has requested an adjustment of Rs 852.047 billion, while FESCO has sought Rs 501.481 billion, IESCO Rs 400.484 billion, QESCO Rs 236.945 billion, GEPCO Rs 376.204 billion, MEPCO Rs 160.823 billion, TESCO Rs 92.079 billion, Sukkur Electric Supply Company Rs 35.796 billion, and Pesco Rs 67.244 billion.
These adjustments are crucial for covering various operational and financial aspects of the distribution and power supply business, including employee pay and allowances.
NEPRA is set to conduct public hearings on these petitions in the first week of April 2024, scheduled for April 2, 3, and 4. Interested parties have been invited to submit comments or objections during these hearings as allowed by law.
The Power Division aims to secure approval for the new tariffs by April or May, with the tariffs expected to be applicable from July 2024 as per commitments made to the International Monetary Fund (IMF). The IMF has emphasized the importance of timely tariff adjustments to ensure cost recovery and avoid net Circular Debt accumulation in the fiscal year 2024.
