The government has sought recovery of around Rs. 34 billion from consumers of distribution companies and K Electric for April to June 2026, equivalent to about Rs. 1.34 per unit, as lower electricity consumption pushed up capacity related costs.
The proposed quarterly tariff adjustment was initially estimated at Rs. 23.03 billion but was later revised upward to Rs. 33.78 billion, according to details presented before the National Electric Power Regulatory Authority.
Capacity charges account for Rs. 46.28 billion of the proposed adjustment, while variable operation and maintenance costs add another Rs. 4.94 billion. These increases are partly offset by negative adjustments of Rs. 13.52 billion in Use of System Charges and Market Operator Fee and Rs. 21.18 billion under the incremental consumption package.
The adjustment also includes Rs. 3.04 billion linked to transmission and distribution losses and Rs. 14.21 billion in unrecovered costs of Small Power Producers and Captive Power Producers.
Industrial representatives at the NEPRA hearing opposed the proposed increase, saying businesses could not absorb another rise in electricity costs and that higher power prices would further hurt industrial competitiveness.
Peshawar Electric Power Company officials told the hearing that electricity consumption had fallen by around 5 percent, mainly because of weaker demand from domestic and commercial consumers. They also linked part of the decline in household demand to the growing use of solar power.
NEPRA Member Maqsood Anwar Khan questioned whether load shedding was also contributing to lower electricity sales. Pesco officials confirmed that load shedding was continuing, including in areas with consumers who regularly pay their bills.
Khan said solar power had helped reduce pressure on the electricity system, particularly during the day, and argued that the shift toward solar should not simply be blamed for lower electricity sales.
Representing the Karachi Chamber of Commerce and Industry, Tanveer Barry said capacity charges had risen sharply and questioned why consumers were being asked to bear higher capacity payments while power companies continued to carry out load shedding. Industrial representatives urged NEPRA to scrutinize the proposed adjustment and defer the increase.
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