DISCOs Seek Nod to Refund Rs. 51.5 Billion to Consumers

Pakistan’s state-run power distribution companies have approached the NEPRA – National Electric Power Regulatory Authority with requests to refund Rs. 51.49 billion to consumers for the January to March period of FY2024-25. This move follows a notable reduction in capacity payments, largely resulting from the government’s decision to cancel several contracts with Independent Power Producers (IPPs), which alone contributed to savings of Rs. 47.12 billion.

In addition to the reduced capacity charges, Rs. 4 billion in savings were made through lower transmission and distribution losses and the recovery of fixed costs on incremental electricity units.

Nine former WAPDA distribution companies, including MEPCO, LESCO, GEPCO, and FESCO, submitted refund proposals. IESCO was the only company to propose a net charge of Rs. 1.76 billion, due to higher capacity and system operation costs, slightly reducing the overall refund from Rs. 53.26 billion.

NEPRA has scheduled a public hearing for April 29. If the proposal is approved, the refund will lower electricity tariffs, reinforcing the downward trend in power costs driven by falling fuel prices and reduced capacity charges.