ISLAMABAD: The Power Division on Friday stated that it is currently unable to confirm whether electricity tariffs for distribution companies (Discos) will rise or fall starting July 1, 2025. The uncertainty stems from pending approvals of cost components submitted to the National Electric Power Regulatory Authority (NEPRA).
This clarification came from Additional Secretary (Power Finance) Mehfooz Bhatti during a public hearing on interim tariffs for eight Discos under the Multi-Year Tariff (MYT) regime for FY2025-26. The query had been raised by a representative of the textile sector.
The eight Discos—GEPCO, QESCO, MEPCO, SEPCO, HESCO, PESCO, TESCO, and the newly formed HAZECO—have requested NEPRA’s approval for a combined revenue requirement exceeding Rs 455.6 billion for the fiscal year 2025-26, as part of their five-year MYT submissions (FY2025-30).
The textile representative raised concerns over potential tariff hikes, noting that current industrial rates have fallen to Rs 31–32 per unit (around 11 cents) and export orders have already been priced based on this rate. He urged the government to ensure stability in power pricing beyond June 2025.
The hearing was temporarily suspended by NEPRA Chairman Waseem Mukhtar, who insisted on representation from a senior Power Division official. Bhatti eventually replaced the Joint Secretary at the session.
Bhatti, who coordinates with the Finance Division on subsidies, said it is too early to predict tariff outcomes. “We’ve proposed seven subsidy scenarios to NEPRA. Once the distribution margins are finalized under MYT, we’ll better understand consumer tariffs after subsidies. Rebasing will apply from July 1, 2025, but no figures are confirmed yet,” he explained.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) strongly opposed shifting the burden of Disco inefficiencies—such as high losses, pension liabilities, and mismanagement—to consumers under MYT.
During the public hearing, the issue of recent tariff determinations of K-Electric was raised by Arif Bilwani who was responded by another businessman from Karachi Rehan Jawed.
Consumer complaints about HESCO’s poor service also prompted NEPRA to dispatch a verification team to Hyderabad on Monday.
Tanveer Barry of the Karachi Chamber of Commerce and Industry criticized Discos for worsening losses, incomplete investment plans, and rising debt-related surcharges. He called for abolishing the Time-of-Use (ToU) mechanism for industrial users and urged third-party audits to expose the true extent of Disco inefficiencies.
Revenue Requirements Breakdown (Select Discos): GEPCO: Rs 67.8 billion (O&M: Rs 43.4B, Pay/Allowances: Rs 16.6B, PYA: Rs 24.4B): MEPCO: Rs 139.1 billion (O&M: Rs 79.6B, Retirement Benefits: Rs 29.3B, PYA: Rs 79.4B) : QESCO: Rs 50.1 billion (O&M: Rs 17.1B, RORB: Rs 15.7B, PYA: Rs 16.3B): SEPCO: Rs 58.0 billion (O&M: Rs 22.2B, DM/SM: Rs 25.3B, PYA: Rs 25.5B): TESCO: Rs 7.3 billion (O&M: Rs 3.9B, DM/SM: Rs 5.6B) : PESCO: Rs 81.4 billion (O&M: Rs 37B, DM/SM: Rs 52B, PYA: Rs 29.3B) : HAZECO: Newly formed; presented one-year requirement. HESCO: Rs 39.4 billion (O&M: Rs 25.1B, DM/SM: Rs 33.6B, PYA: Rs 5.7B)
The final tariff adjustments will be decided after NEPRA completes its review process, taking into account efficiency benchmarks, government subsidies, and financial performance
