DISCOs Ask Govt Permission to Refund Rs. 51.5 Billion to Consumers

Pakistan’s state-run power distribution companies have filed petitions with the National Electric Power Regulatory Authority (NEPRA) to refund Rs. 51.49 billion to consumers for January–March FY2024 -25, following a sharp drop in capacity payments. The refund is primarily due to Rs. 47.12 billion in reduced capacity charges after the government canceled several contracts with Independent Power Producers (IPPs). An additional Rs. 4 billion in savings came from lower transmission and distribution (T&D) losses and the recovery of fixed costs on incremental units. Nine ex-WAPDA distribution companies, including MEPCO, LESCO, GEPCO, and FESCO, filed the refund requests. IESCO was the only company to propose a charge of Rs. 1.76 billion due to increased capacity and system operation costs, reducing the total refund from Rs. 53.26 billion to Rs. 51.49 billion. Breakdown of capacity-related savings: T&D losses decreased by Rs. 2.05 billion. Recovery from incremental units added Rs. 4.96 billion. However, system usage and market operation charges rose by Rs1.81 billion, and O&M expenses increased by Rs. 829 million. NEPRA will hold a public hearing on April 29. If approved, the refund would reduce electricity tariffs, continuing the downward trend driven by falling fuel and capacity costs.