Discos seek approval of over Rs10bn in additional charges under quarterly adjustment

• Rs24.25 billion being sought under capacity payments.
• Around Rs431bn capacity payments required for Oct-Dec 2025.
• Furnace oil-based power plants to not operate in future: officials.
  

ISLAMABAD: The power distribution companies (Discos) has asked National Electric Power Regulatory Authority (Nepra) to approve Rs10.75 billion in additional charges under the second quarterly adjustment, a move that could translate Re0.43 per unit increase for consumers nationwide, including K-Electric users, The News reported on Wednesday.

The National Electric Power Regulatory Authority (Nepra) held a public hearing on the petition, chaired by Nepra Chairman Waseem Mukhtar. Power utilities pressed for recovery of costs mainly linked to capacity payments between October and December 2025.

Officials told the regulator that Rs24.25 billion was being sought under capacity payments for the quarter. However, Nepra was also informed of a reduction of about Rs13.5 billion in other components, including operations and maintenance, use-of-system charges and the so-called incremental package.

CPPA officials said around Rs431 billion reference capacity payments were required for the quarter Oct-Dec 2025, compared with Rs459 billion in the same quarter of previous year. Since the power consumption reduced in the quarter, so a deficit of around 24.25 billion emerged, official said.

The hearing drew strong criticism from consumer representatives, who accused the government of shifting the burden of flawed policies onto the public.

Several participants said the incremental package was benefiting selected industries while harming others, arguing that the data shared under the scheme was misleading.

Without real growth in industrial demand, how can consumers benefit from such incentives, asked a participant, urging Nepra to reassess the figures submitted by Central Power Purchasing Agency.

Officials told the regulator that furnace oil-based power plants would not be operated in future, as the government shifts away from costly generation sources.