ISLAMABAD: The Power Division on Friday admitted it has no clear estimate of whether electricity tariffs will rise or fall from July 1, 2025, stating that any change hinges on the regulator’s approval of cost components submitted by eight power distribution companies (Discos) under the Multi-Year Tariff (MYT) regime.
During a NEPRA public hearing, Additional Secretary (Power Finance) Mehfooz Bhatti explained that seven tariff scenarios have been submitted to NEPRA, but final rates will depend on approved distribution margins and government subsidies. A targeted distribution subsidy (TDS) of Rs250 billion is allocated for FY2025-26.
Representatives from industry and commerce voiced concerns over uncertainty in industrial tariffs and burden-sharing. Aamir Sheikh of the textile sector stressed that industries had committed export orders based on current rates of Rs31-32/unit and could not afford unexpected hikes.
Business leaders including FPCCI and KCCI slammed Discos for operational inefficiencies, rising technical and commercial losses, and lack of credible investment plans. Calls were made for third-party audits and the abolition of the Time of Use (ToU) mechanism for industries.
NEPRA also pledged a field visit to HESCO following complaints from Karachi-based consumers.
Discos including GEPCO, MEPCO, QESCO, SEPCO, PESCO, TESCO, HESCO, and HAZECO collectively seek a revenue requirement of over Rs455 billion for FY2025-26, with major allocations for salaries, pensions, depreciation, RORB, and prior year adjustments.
Story by Mushtaq Ghumman
