Power consumers to brace for another surge in bills

Consumers of electricity in Pakistan are on the verge of another financial shock as Power Distribution Companies (DISCOs) seek approval from the National Electric Power Regulatory Authority (NEPRA) to recover a staggering Rs81.5 billion through quarterly adjustments for the second quarter of the financial year 2023-24 (October to December 2023). The burden primarily stems from capacity charges for power plants that remained idle during this period, and this additional financial strain will be passed on to consumers who are already grappling with mounting electricity bills. DISCOs have formally submitted an application to NEPRA, indicating that if their request is approved, consumers could face a substantial hike in power tariffs, exacerbating the financial challenges faced by households and businesses alike. In their plea to NEPRA, DISCOs are seeking a total of Rs81,498 million, covering capacity charges, User Service Charges (UoSC) & Market Operator Fee (MoF), and the impact of Transmission & Distribution (T&D) losses on monthly Fuel Charges Adjustment (FCA). The breakdown includes a substantial Rs75,139 million for capacity charges and Rs10,818 million for the impact of T&D losses on monthly FCA.