Electricity consumers in Pakistan may soon face a major financial burden. Power Distribution Companies (DISCOs) request the National Electric Power Regulatory Authority (NEPRA) for permission to recover Rs81.5 billion. This charge is for the second quarter of the fiscal year 2023-24 (October to December 2023). The primary reason for this request is capacity charges for unused power plants during this period. If approved, this increase will significantly raise electricity bills for consumers.
DISCOs’ Request and NEPRA’s Response
DISCOs have applied to NEPRA for a total recovery of Rs81,498 million. This amount includes capacity charges, User Service Charges (UoSC), Market Operator Fee (MoF), and the effects of Transmission & Distribution (T&D) losses on Fuel Charges Adjustment (FCA). The breakdown shows Rs75,139 million for capacity charges and Rs10,818 million for T&D losses impact monthly FCA.
Individual DISCOs have filed specific adjustment requests. These include Faisalabad Electric Supply Company (FESCO), which requests Rs9,446 million, and Lahore Electric Supply Company (LESCO), which seeks Rs15,105 million, among others.
NEPRA, following federal government guidelines, is to decide on the second-quarter adjustment for FY2023-24. This decision will affect not only DISCOs consumers but also those K-Electric serves. NEPRA has scheduled a February 14, 2024 hearing to consider these requests. This hearing, open to public comment, will take place both at NEPRA’s headquarters and online.
DISCOs’ applications cover various charges including capacity and transmission charges and the impact of T&D losses on FCA for the second quarter of FY2023-24.
 propose a significant Rs81.5 billion tariff hike for the second quarter of FY 2023-24.){kind=link}