Electricity consumers in Pakistan may face another jolt. The country’s 10 power distribution companies (DISCOs) are proposing a tariff increase of Rs3.50 to Rs6 per unit for the final quarter of the fiscal year 2022-23.
The National Electric Power Regulatory Authority (NEPRA) has scheduled a hearing for August 23 to review the petitions. If approved, this adjustment could impose an additional financial strain of Rs144.688 billion on consumers, retroactive from July 1, 2023.
An official shed light on potential outcomes: if the increase is implemented over the first three months of FY24, consumers could see an uptick of Rs5-6 per unit. Conversely, if the increase spans six months, it could be between Rs2.50-3 per unit. The ball ultimately lies in the government’s court to decide the implementation period for the fourth quarter of FY23.
The average tariff for ToU consumers in the third quarter of FY23 is Rs49.57 per unit once all additional charges are considered. Should the proposed adjustments be accepted, this could jump to Rs53-56 per unit. This spike is a looming concern for domestic users and the commercial and industrial sectors.
Breaking down the Rs144.688 billion, DISCOs’ primary request revolves around Rs122.413 billion for capacity payment for the last quarter of FY23. The remaining amounts are spread across variable O&M, UoSC and MoF, T&D losses on monthly FCA, the effect of incremental units, and the impact on lifeline consumers.
On individual accounts, companies like Faisalabad Electric Supply Company (FESCO) and Lahore Electric Supply Company (LESCO) are looking to recover Rs23.491 billion and Rs31.877 billion, respectively. GEPCO, HESCO, IESCO, MEPCO, QUESCO, SEPCO, and TESCO, have also presented their respective financial needs.