DISCOs seek recovery of billions
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Electricity consumers are expected to face a tariff hike in financial year 2025-26 under the multiyear tariff regime.
A majority of power distribution companies (DISCOs) have submitted petitions to the power-sector regulator, seeking the recovery of billions of rupees from consumers to meet their annual revenue requirements.
The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 13 in response to the petitions.
All eight government-owned DISCOs have approached Nepra with requests for an interim tariff increase for fiscal year 2025-26. The petitions, under the multiyear tariff (MYT) regime covering the period from FY 2025-26 to FY 2029-30, have been filed by Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (Tesco) and Hazara Electric Supply Company (Hazeco).
The revenue requirements of these DISCOs show a significant financial burden for the upcoming fiscal year, which may be passed on to consumers.
Mepco has sought the highest interim revenue requirement of Rs139.1 billion, followed by Pesco at Rs81.4 billion, Gepco at Rs67.8 billion, Sepco at Rs58 billion, Qesco at Rs50.1 billion, Hesco at Rs39.4 billion, Hazeco at Rs12.3 billion and Tesco at Rs7.3 billion.
Mepco has also made a higher demand on account of operations and maintenance (O&M) cost at Rs63.1 billion, largely driven by staff pay and allowances of Rs22.3 billion, post-retirement benefits of Rs29 billion, and repair and maintenance expenses of Rs7.8 billion.
Gepco reported O&M cost of Rs35.3 billion, including Rs16.6 billion for pay and allowances and Rs13.8 billion for retirement benefits. Pesco's O&M cost was estimated at Rs37 billion, with Rs32.7 billion alone allocated to salaries.
Other companies also cited sizeable O&M allocations. Hesco claimed Rs25.1 billion, Sepco Rs22.2 billion, Qesco Rs17 billion, Tesco Rs3.8 billion and Hazeco Rs7.8 billion.
Depreciation and the return on rate base (RORB) formed another significant part of the cost buildup. Mepco again topped the list with Rs8.9 billion in depreciation and Rs16.3 billion in RORB. Gepco followed with Rs4.8 billion in depreciation and Rs8.8 billion in RORB.
Pesco sought Rs5.6 billion and Rs12.3 billion under the same heads, while Hesco demanded Rs3.2 billion in depreciation and Rs6.8 billion in RORB. Qesco's RORB was estimated at Rs15.7 billion alongside Rs297 billion for depreciation.
Some power distribution companies have sought adjustments for prior years as well, which resulted in an increase in revenue requirements.
Mepco claimed Rs59.5 billion, Pesco claimed Rs29.3 billion, Gepco sought Rs24.4 billion and Sepco requested Rs25.6 billion.
Qesco and Hesco requested Rs16.3 billion and Rs5.8 billion, respectively, while Tesco and Hazeco did not include prior year adjustments.
Tesco and Sepco also factored in bad debt provisions, with Rs1.6 billion and Rs5.6 billion respectively. Sepco also reported Rs1.6 billion in finance costs.
To consider these petitions, Nepra has scheduled a public hearing on June 13 and invited all parties to submit their views and comments in response to the revenue requirements made by the distribution companies.
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Express Tribune
a day ago
- Express Tribune
DISCOs seek recovery of billions
Listen to article Electricity consumers are expected to face a tariff hike in financial year 2025-26 under the multiyear tariff regime. A majority of power distribution companies (DISCOs) have submitted petitions to the power-sector regulator, seeking the recovery of billions of rupees from consumers to meet their annual revenue requirements. The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 13 in response to the petitions. All eight government-owned DISCOs have approached Nepra with requests for an interim tariff increase for fiscal year 2025-26. The petitions, under the multiyear tariff (MYT) regime covering the period from FY 2025-26 to FY 2029-30, have been filed by Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (Tesco) and Hazara Electric Supply Company (Hazeco). The revenue requirements of these DISCOs show a significant financial burden for the upcoming fiscal year, which may be passed on to consumers. Mepco has sought the highest interim revenue requirement of Rs139.1 billion, followed by Pesco at Rs81.4 billion, Gepco at Rs67.8 billion, Sepco at Rs58 billion, Qesco at Rs50.1 billion, Hesco at Rs39.4 billion, Hazeco at Rs12.3 billion and Tesco at Rs7.3 billion. Mepco has also made a higher demand on account of operations and maintenance (O&M) cost at Rs63.1 billion, largely driven by staff pay and allowances of Rs22.3 billion, post-retirement benefits of Rs29 billion, and repair and maintenance expenses of Rs7.8 billion. Gepco reported O&M cost of Rs35.3 billion, including Rs16.6 billion for pay and allowances and Rs13.8 billion for retirement benefits. Pesco's O&M cost was estimated at Rs37 billion, with Rs32.7 billion alone allocated to salaries. Other companies also cited sizeable O&M allocations. Hesco claimed Rs25.1 billion, Sepco Rs22.2 billion, Qesco Rs17 billion, Tesco Rs3.8 billion and Hazeco Rs7.8 billion. Depreciation and the return on rate base (RORB) formed another significant part of the cost buildup. Mepco again topped the list with Rs8.9 billion in depreciation and Rs16.3 billion in RORB. Gepco followed with Rs4.8 billion in depreciation and Rs8.8 billion in RORB. Pesco sought Rs5.6 billion and Rs12.3 billion under the same heads, while Hesco demanded Rs3.2 billion in depreciation and Rs6.8 billion in RORB. Qesco's RORB was estimated at Rs15.7 billion alongside Rs297 billion for depreciation. Some power distribution companies have sought adjustments for prior years as well, which resulted in an increase in revenue requirements. Mepco claimed Rs59.5 billion, Pesco claimed Rs29.3 billion, Gepco sought Rs24.4 billion and Sepco requested Rs25.6 billion. Qesco and Hesco requested Rs16.3 billion and Rs5.8 billion, respectively, while Tesco and Hazeco did not include prior year adjustments. Tesco and Sepco also factored in bad debt provisions, with Rs1.6 billion and Rs5.6 billion respectively. Sepco also reported Rs1.6 billion in finance costs. To consider these petitions, Nepra has scheduled a public hearing on June 13 and invited all parties to submit their views and comments in response to the revenue requirements made by the distribution companies.
Express Tribune
03-05-2025
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It has suggested that in order to retain the number of filers, the government may impose Rs1,000 token tax for incomes above Rs600,000 to Rs1.2 million annual income. It has also demanded tax credit for deductible allowances for housing loans, education, and medical expenses. The OICCI has recommended limiting taxation of company contributions to Provident Fund to 10%, eliminating the Rs150,000 cap. It has also sought specific exemption of capital value tax of% on foreign assets for expatriate Pakistanis returning and foreign nationals becoming resident employees. In a major proposal, the OICCI has demanded reducing the corporate income tax rate gradually from 29% to 25% through an annual 1% reduction to align with other emerging economies. It has sought abolishing the super tax gradually over three years, in the first phase cutting from 10% to 6% from July. The OICCI has demanded abolishing 15% income tax on payment of dividends, which takes the rate to 64% for some companies. 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Express Tribune
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Consumers to see Rs51.5b power tariff relief
QATPL is a private limited company, wholly owned by the Government of Punjab and incorporated under the Companies Ordinance 1984 on March 25, 2015. The facility will be a thermal IPP using RLNG as the primary fuel and High-Speed Diesel (HSD) as a back-up. PHOTO: AFP Listen to article Consumers are set to receive a relief of Rs51.493 billion on account of the third quarter of fiscal year 2024-25, with NEPRA scheduled to hold a public hearing on April 29, 2025, to consider the requests of ex-WAPDA distribution companies (DISCOs) for these quarterly adjustments. The proposed reductions pertain to capacity charges, transmission charges, market operator fees, variable operation and maintenance costs, the impact of incremental units, and transmission and distribution losses on the monthly fuel cost adjustment (FCA). According to documents, the DISCOs submitted a consolidated request for the JanuaryMarch 2025 quarter, in accordance with NEPRA's notified tariff and approved adjustment mechanism. The net adjustment is negative, indicating a reduction in recoverable costs for most companies. Multan Electric Power Company (MEPCO) submitted the largest reduction request of Rs15.646 billion, 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, and 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. Islamabad Electric Supply Company (IESCO), in contrast, requested a net positive adjustment of Rs1.762 billion. Capacity charges form a substantial portion of these adjustments. Key figures include MEPCO at Rs14.437 billion, LESCO at Rs7.824 billion, GEPCO at Rs7.204 billion, FESCO at Rs4.254 billion, SEPCO at Rs3.317 billion, HESCO at Rs3.903 billion, QESCO at Rs2.289 billion, and TESCO at Rs4.035 billion. IESCO and Peshawar Electric Supply Company (PESCO) each reported multiple figures for capacity charge adjustments. NEPRA has clarified that under federal policy guidelines, the quarterly adjustment, once determined, will also apply to K-Electric consumers. A public hearing notice invites stakeholders to submit written or oral comments. Relevant regulations and requests are available on NEPRA's website. FCA for March Additionally, consumers of all DISCOs except K-Electric may benefit from a further relief of Rs0.0309 per kilowatt-hour (kWh) as a fuel cost adjustment (FCA) for March 2025. NEPRA has scheduled a separate public hearing on April 29 to deliberate this proposed decrease. The request, submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G), proposes reducing the fuel cost component from the reference rate of Rs9.2560/kWh to Rs9.2251/kWh. Under Section 31(7) of the NEPRA Act, NEPRA is empowered to adjust monthly tariffs based on fuel price variations, subject to federal policy guidelines. If approved, the adjustment will be notified in the official Gazette. In March 2025, total energy generation stood at 8,409 GWh. Hydel sources contributed 1,297 GWh (15.42%), local coal 1,393 GWh (16.57%) at Rs12.2408/kWh, and imported coal 545 GWh (6.48%) at Rs17.7377/kWh. No generation occurred using high-speed diesel, while RFO-based generation was 4 GWh at Rs29.5109/kWh. Gas-based generation stood at 979 GWh (11.64%) at Rs11.8982/kWh, and RLNG accounted for 1,528 GWh (18.17%) at Rs23.1144/kWh. Nuclear energy provided the largest low-cost share at 2,223 GWh (26.43%) at Rs1.9999/kWh. Iran supplied 39 GWh at Rs24.9993/kWh. Renewable sources contributed modestly: wind at 230 GWh (2.74%), solar at 120 GWh (1.43%), and bagasse at 51 GWh (0.61%) at Rs5.9822/kWh. Total generation cost Rs79.522 billion, averaging Rs9.4569/kWh. After adjusting for a previous negative FCA of Rs0.3914/kWh (Rs3.291 billion) and energy sales to IPPs of 27 GWh (Rs1.379 billion), net energy delivered to DISCOs was 8,114 GWh.
