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Aftab Maken
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Wednesday concluded hearings on the quarterly tariff adjustment sought by distribution companies (DISCOs) and K-Electric, with the federal government proposing a Rs0.45 per unit increase in electricity prices for the next three months. The authority, chaired by Waseem Mukhtar, reserved its judgment after detailed deliberations.
According to the petition, DISCOs have requested an additional Rs 8.41 billion under the first quarterly adjustment for the period July–September 2025. The government has argued that the proposed hike is essential to recover fuel costs and maintain sector stability.
During the hearing, consumer representatives strongly opposed the proposed increase, pointing out that the Prime Minister had recently announced a Rs7.41 per unit reduction in electricity prices for a three-month period. They argued that despite this relief, the circular debt continues to rise, and the government’s new industrial and agricultural subsidy packages could further burden ordinary consumers.
NEPRA Member Sindh, Rafiq Sheikh, remarked that the structural flaws in the power sector prevent the elimination of circular debt. “As long as distribution losses, power theft, and poor recovery persist, circular debt will continue to grow,” he said.
Industrial consumers complained that industries are already paying a Rs3.23 per unit surcharge to cover circular debt, and the continuation of new surcharges on bank-financed debts would further erode competitiveness.
The Power Division acknowledged that losses had increased due to inefficiencies and low recoveries. It said the impact of technical and financial constraints in the distribution system was under review. NEPRA officials stated that a detailed assessment of all figures would be completed before submitting the final decision to the federal government.
Consumer groups argued that capacity payments had once again surged during the July–September quarter, worsening the circular debt burden. A representative of Jamaat-e-Islami Karachi described the renewed increase in capacity charges as “alarming” and an unfair burden on consumers.
According to the officials in Power Ministry, the rise in circular debt during the quarter stemmed from two key factors — an increase of Rs87 billion in power companies’ losses and a shortfall of Rs84 billion in recoveries.
The authority has reserved its decision and is expected to forward its findings to the federal government in the coming days, after which an official notification regarding the tariff adjustment will be issued.
