Consumers Get Rs51.5 Billion Power Tariff Relief

NEPRA will convene a public hearing on April 29, 2025, to examine the claims of former WAPDA distribution companies (DISCOs) for these quarterly adjustments, which will result in a relief of Rs51.493 billion for consumers for the third quarter of fiscal year 2024–2025. Capacity charges, market operator fees, transmission charges, variable operation and maintenance expenses, the effect of incremental units, and transmission and distribution losses on the monthly fuel cost adjustment (FCA) are all included in the proposed reductions.

Consumers are set to benefit as DISCOs request Rs51.5 billion tariff relief, following approved adjustment methods for January–March 2025.

The largest reduction request, of Rs15.646 billion, was made by Multan Electric Power Company (MEPCO), followed by Lahore Electric Supply Company (LESCO) at Rs9.077 billion, Gujranwala Electric Supply Company (GEPCO) at Rs7.204 billion, Tribal Areas Electric Supply Company (TESCO) at Rs4.341 billion, Faisalabad Electric Supply Company (FESCO) at Rs4.690 billion, Quetta Electric Supply Company (QESCO) at Rs2.238 million, Hyderabad Electric Supply Company (HESCO) at Rs3.903 billion, and Sukkur Electric Power Company (SEPCO) at Rs3.494 billion. In contrast, the Islamabad Electric Supply Company (IESCO) asked for a net positive adjustment exceeding Rs1.762 billion.

Multan Electric Power

A significant amount of these modifications are made up of capacity costs. FESCO is worth Rs4.254 billion, SEPCO is worth Rs3.317 billion, HESCO is at Rs3.903 billion, QESCO is worth Rs2.289 billion, TESCO is worth Rs4.035 billion, MEPCO is worth Rs14.437 billion, LESCO is worth Rs7.824 billion, GEPCO is worth Rs7.204 billion, and FESCO is worth Rs4.254 billion. For capacity charge modifications, IESCO and Peshawar Electric Supply Company (PESCO) each provided many estimates.

NEPRA has made it clear that, in accordance with federal policy standards, K-Electric customers would also be affected by the quarterly adjustment whenever it is decided. Stakeholders are invited to provide written or spoken comments in response to a public hearing notice. NEPRA’s website contains pertinent regulations and requests.

March FCA

Furthermore, a fuel cost adjustment (FCA) of Rs0.0309 per kWh for March 2025 may be available to customers of all DISCOs, with the exception of K-Electric. In order to discuss this proposed reduction, NEPRA has set a separate public hearing for April 29. Central Power Purchasing Agency Guarantee Limited (CPPA-G) has made the request, which suggests lowering the fuel cost component from the reference rate of Rs9.2560/kWh to Rs9.2251/kWh.

March FCA

Subject to government policy directives, NEPRA is authorized by Section 31(7) of the NEPRA Act to modify monthly charges in response to changes in fuel prices. The change will be announced in the official Gazette if it is accepted. 8,409 GWh of energy were generated overall in March 2025.

1,297 GWh (15.42%) came from hydel sources, 1,393 GWh (16.57%) from local coal at Rs12.2408/kWh, and 545 GWh (6.48%) from imported coal at Rs17.7377/kWh. High-speed diesel was not used for any generating, although RFO-based generation produced 4 GWh @ Rs29.5109/kWh.
RLNG produced 1,528 GWh (18.17%) at Rs23.1144/kWh, while gas-based generation produced 979 GWh (11.64%) at Rs11.8982/kWh. The highest low-cost contribution came from nuclear energy, which produced 2,223 GWh (26.43%) for Rs1.9999/kWh. 39 GWh were supplied by Iran at Rs24.9993/kWh.

A moderate contribution was made by renewable sources, including bagasse at Rs5.9822/kWh, solar at 120 GWh (1.43%), and wind at 230 GWh (2.74%). At an average of Rs9.4569/kWh, the total cost of generating was Rs79.522 billion.
Net energy provided to DISCOs was 8,114 GWh after deducting energy sales to IPPs of 27 GWh (Rs1.379 billion) and a prior negative FCA of Rs0.3914/kWh (Rs3.291 billion).

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Q1. What is the power tariff relief recently proposed?

The power sector regulator has proposed a Rs51.5 billion reduction in electricity charges for the January–March 2025 quarter, offering billing relief to power users across Pakistan.

Q2. Who stands to benefit from this tariff adjustment?

Electricity bill payers tied to WAPDA-affiliated distribution companies (DISCOs)—such as MEPCO, LESCO, GEPCO, FESCO, and others—will benefit through lower monthly charges.

Q3. Why is a public hearing scheduled for April 29, 2025?

The national energy authority is holding a public hearing to assess the DISCOs’ proposed quarterly adjustments, which reflect a net reduction in recoverable costs—translating into savings for end-users.

Q4. What types of costs are being reviewed for reduction?

The adjustment covers several components:

  • Power capacity charges

  • Grid transmission costs

  • Market operation fees

  • O&M expenses

  • Incremental energy use impacts

  • Line losses and fuel adjustments

Q5. Which power company submitted the highest reduction request?

Multan Electric Power Company (MEPCO) sought the largest adjustment at Rs15.646 billion, followed by LESCO with Rs9.077 billion, and GEPCO at Rs7.204 billion.

Q6. Will Karachi’s electricity users see any changes?

Yes. As per federal energy guidelines, any decision made will also be extended to K-Electric customers, affecting their quarterly adjustments once finalized.

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