ISLAMABAD: Electricity consumers have urged the National Electric Power Regulatory Authority (Nepra) to conduct a comprehensive audit of power distribution companies (DISCOs) before approving their request to recover Rs455 billion through increased tariffs.
During a public hearing held by Nepra on Friday, stakeholders criticized the lack of transparency in the interim tariff applications submitted by eight DISCOs under the multiyear tariff (MYT) regime for FY2025-26 to FY2029-30.
Karachi Chamber of Commerce and Industry (KCCI) representative Tanveer Bari emphasized the need for DISCOs to disclose their investment plans, highlighting that many are operating above the loss thresholds set by the regulator. He also expressed concern over the proposed imposition of a five-year surcharge to address the growing circular debt.
The DISCOs seeking the hike include Mepco, Pesco, Gepco, Sepco, Qesco, Hesco, Tesco, and Hazeco. Mepco leads with a revenue demand of Rs139.1 billion, followed by Pesco at Rs81.4 billion and Gepco at Rs67.8 billion.
Massive allocations for operation and maintenance, salaries, retirement benefits, depreciation, and return on rate base (RORB) further inflate costs. Mepco alone has projected Rs63.1 billion in O\&M expenses, including Rs22.3 billion for staff pay and Rs29 billion for post-retirement benefits.
Consumers and industry groups are demanding greater financial accountability before any burden is shifted to the public through tariff increases.
