Islamabad, 16, Apr 2025: DISCOs Plan to ease the burden on Electricity Consumers may soon materialize, as Pakistan’s public sector electricity distributors have submitted refund petitions to NEPRA, seeking approval to return Rs. 51.49 billion to customers for the period of January to March FY2024–25.
This substantial refund stems from a notable reduction in power generation capacity costs following the government’s termination of several agreements with Independent Power Producers (IPPs).
The majority of these savings Rs. 47.12 billion resulted from cutbacks in capacity-related expenses.
Additionally, improved operational efficiencies, including lower transmission and distribution (T&D) losses and enhanced revenue recovery from extra electricity consumption, added another Rs. 4 billion in savings to the overall proposal.
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A total of nine former WAPDA-affiliated power companies including MEPCO, LESCO, GEPCO, and FESCO submitted formal applications to NEPRA.
Among them, only IESCO proposed a positive adjustment of Rs. 1.76 billion, citing rising system operation and capacity charges, thereby decreasing the overall refund amount from Rs. 53.26 billion to Rs. 51.49 billion.
Estimated Refunds by Region:
- MEPCO: Rs. 14.44 billion
- LESCO: Rs. 7.82 billion
- GEPCO: Rs. 6.48 billion
- FESCO: Rs. 4.25 billion
- TESCO: Rs. 4.03 billion
- HESCO: Rs. 3.8 billion
- SEPCO: Rs. 3.32 billion
- PESCO: Rs. 2.54 billion
- QESCO: Rs. 2.29 billion
In addition to these, a decline in T&D losses brought about Rs. 2.05 billion in savings, while the recovery from increased electricity usage contributed Rs. 4.96 billion.
However, costs related to system utilization and market operations saw a hike of Rs. 1.81 billion, and operational & maintenance expenditures also rose by Rs. 829 million.
A public hearing is scheduled for April 29, during which NEPRA will evaluate the DISCOs Plan and its impact on Electricity Consumers.
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If the proposal is approved, consumers across Pakistan may witness a further dip in their power bills strengthening a positive trend attributed to falling fuel prices and declining capacity payments.
This move, if sanctioned, would be a welcomed development for households and businesses alike, promising some fiscal breathing room during an economically testing time.
