02-07-2025
- Business
- Business Recorder
DISCOs and KE: Nepra approves revised average uniform SoT
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday approved, in principle, a revised average uniform Schedule of Tariff (SoT) of Rs 31.59/kWh for power Distribution Companies (DISCOs) and K-Electric (KE) for FY 2025-26, amid serious concerns on the performance of Discos.
The revised new tariff has been set at Rs 31.59/kWh, down from Rs 32.73/kWh, with an average reduction of Rs 1.14/kWh following the incorporation of a Tariff Differential Subsidy (TDS) of Rs 250 billion for the fiscal year 2025–26.
Additionally, Nepra announced a reduction in the uniform average tariff from Rs 35.50/kWh to Rs 34/kWh, indicating an overall decrease of Rs 1.50 per unit.
Uniform tariff: govt formally moves Nepra
The Authority, comprising Member (Tech) Rafique Ahmad Shaikh, Member (KPK), Maqsood Anwar Khan (Development) officiated in the hurriedly convened public hearing.
Power Division was represented by Additional Secretary (Power Finance) Mehfooz Bhatti and Naveed Qaiser from PPMC (Power Planning and Monitoring Company) shared information about rebasing of power tariff and responded to the questions raised during the hearing. According to the documents shared with NEPRA, all categories of consumers will get a relief of Rs 1.15/kWh (average Rs 1.14/kWh).
However, the representative of Power Division avoided accepting that tariff relief of Rs 7.50/kWh announced by the Prime Minister is over. He argued that the relief in tariff which will end from June 2025, will be replaced with reduction in base tariff by Rs 1.15 per unit, Rs 0.45 per unit through elimination of PTV fee and Rs 0.90 per unit through discontinuation of Electricity Duty by provinces.
'The government's uniform average tariff is Rs 31.59/kWh for FY 2025-26 against Nepra's determined rate of Rs 34 per unit,' Naveed said requesting Nepra to allow the proposed new rebased uniform tariff so that reduced tariff is passed on to the consumers.
During the public hearing, representatives from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and K-Electric raised several concerns. Rehan Jawed (FPCCI) demanded that industrial tariff be redesigned in consultation with industry as current industrial tariff mechanism is flawed.
He requested Nepra not to approve Government's Motion of uniform tariff in current form as industry opposes it in its entirety.
Director Finance KE, Ayaz Jaffer urged Nepra to ensure that KE's tariff is adjusted in line with the latest determinations.
The representative of Power Division noted that federal government has challenged Nepra's tariff determinations of KE; and suggested that as per TDS agreement between GoP and KE, the latter has legal permission to file TDS claims as per latest determinations.
Nepra's legal counsel, Mian Ibrahim stated that the Power Division has no legal authority to override Nepra's tariff decisions.
Meanwhile, Arif Bilwani criticized Nepra for scheduling the hearing on a public holiday, arguing that it restricted public access and transparency, especially for consumers.
One of the key concerns discussed was the tariff structure post July 1, 2025, particularly the expiration of the Prime Minister's Rs 7.50/kWh relief package. According to Aamir Sheikh, representing the industrial sector, the net reduction from the new tariff is only Rs 1.15/kWh, whereas the PM's Rs 6/kWh relief ended in June, and an additional Rs 1.55/kWh relief will expire in July.
This implies that despite the official reduction, industries may face a net increase of Rs 5/unit, potentially rendering their operations financially unsustainable. Sheikh called on the Prime Minister to allocate funds from the Carbon Levy on furnace oil and the gas levy to continue providing relief in electricity tariffs for the industrial sector.
Tanveer Barry representative from KCCI said that he was attending the hearing as a protest because only one day was given for preparation, and suggested that Nepra should give 7 days for comments.
He contended that on the one hand Rs 1.15/kWh relief was not enough while on the other hand government imposed Rs 3.23/kWh circular debt surcharge.
'The government had announced that after negotiations with IPPs consumers will get a big relief next fiscal year but no big relief is seen. Nepra should reduce fixed charges. Peak hours and off peak should be abolished so that industry may be run 24 hours at the same tariff,' he continued.
Regarding net metering 1MW cap on industrial export should be lifted. This will allow discos to procure cheaper electricity and improve their average cost of supply while promoting clean energy. New industrial connections or load enhancement should be processed within 30 days.
Member (Tech) expressed serious concerns on the performance of Discos especially fudging in meter reading to recover inflated bills. He said, inquiries of Discos have been conducted on this issue and currently an inquiry is in process against SEPCO.
Dr. Kashif, CEO PITC informed the hearing that the purpose of 'Apna Meter, Apni Reading' App is to get rid of overbilling in Discos.
On the issue of solarization, the representative of Power Division, sought Nepra's support in sorting out this issue as other consumers are paying for the cost of net metering consumers.
Copyright Business Recorder, 2025
