NEPRA Reviews DISCOs’ Rs8.41bn Recovery Bid as Capacity Charges Rebound

Overview

• Power distribution companies sought approval to recover a net Rs8.41 billion for Q1 FY2025–26, reflecting Rs21.702 billion in capacity charges partly offset by Rs13.292 billion in negative adjustments.
• Regulators called the rise in capacity payments alarming and warned that circular debt will continue so long as losses stay high and bill recoveries remain weak.
• Industry representatives rejected government claims of debt containment and tariff relief, citing a reported Rs79 billion increase in circular debt during July–September and urging a cut to Rs16 per unit under the incremental scheme.
• NEPRA noted the Power Division did not attend the hearing and said it will issue a letter of displeasure before deciding after a review of DISCO data.
• A separate Nov 11 hearing will consider a federal motion for a flat Rs22.98 per unit on incremental industrial and private agricultural use, described as subsidy neutral with positive FCAs applied and QTAs, DSS, and negative FCAs excluded.