The cost of electricity in Pakistan is expected to rise due to quarterly adjustments, with a request submitted for the first quarter adjustment of the current fiscal year. The National Electric Power Regulatory Authority (NEPRA) has sought an additional collection of Rs 8.72 billion from electricity consumers nationwide, including Karachi.
The requested breakdown includes:
- Rs 8.06 billion under capacity charges
- Rs 1.25 billion for operations and maintenance
- Rs 1.65 billion for system charges and market operation fees
Currently, electricity consumers are paying Rs 1.74 per unit under the quarterly adjustment mechanism. The collection for the last quarter adjustment of the previous fiscal year is expected to be completed by the end of this month.
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Meanwhile, the World Bank has recommended the transfer of ownership of 10 power distribution companies (DISCOs) to the president of Pakistan before their auction. This proposal comes as part of efforts to privatize these companies, although concerns have been raised about the sustainability of such a move, as politically induced policies may continue to burden the sector even after privatization. The World Bank’s recommendation is one of several prior actions suggested for the privatization process. The Senate Standing Committee on Privatisation discussed the complexity of privatizing DISCOs, noting that it may be a far more challenging task than the privatisation of Pakistan International Airlines (PIA).
