Pakistan To Face Another Electricity Price Hike Soon

Pakistan’s new government promised relief for inflation-stricken citizens grappling with soaring utility bills and food prices. However, hopes for immediate respite appear dim as another round of electricity price hikes looms on the horizon.

With consumers already burdened by paying over Rs50 per unit, approximately 10 power Distribution Companies (Discos) have petitioned the National Electric Power Regulatory Authority (NEPRA) to further increase the financial load on consumers by a staggering Rs 2.765 trillion.

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Among these requests, Lahore Electric Supply Company (LESCO) seeks an adjustment of Rs 852.047 billion, Faisalabad Electric Supply Company (FESCO) aims for Rs 501.481 billion, and Islamabad Electric Supply Company (IESCO) pursues Rs 400.484 billion.

Similarly, other companies such as Quetta Power Company, Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO), Tribal Areas Electric Supply Company (TESCO), Sukkur Electric Supply Company, and Peshawar Electric Supply Company (Pesco) have submitted appeals totaling billions of rupees.

These appeals cite various factors for price adjustments, including operations and maintenance costs, rupee depreciation, return on rate base, gross margin, net margin, and prior year adjustments.

Media reports speculate a potential surge of up to Rs7 per unit in electricity rates in the coming months, pending the decision of the National Electric Power Regulatory Authority, although it’s noted that definitive conclusions are premature before the regulatory hearing.