FPCCI Opposes Rs268 Billion Additional Electricity Tariff Burden on Consumers
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the National Electric Power Regulatory Authority (NEPRA) to reject disputed electricity tariff adjustments worth Rs268 billion that power distribution companies are seeking to recover from consumers.
In its submission to the regulator, the country’s leading business organisation raised concerns over claims made by 10 former WAPDA distribution companies (Discos), arguing that several adjustments were either previously rejected by NEPRA, disputed by third parties or insufficiently documented.
The objections relate to tariff petitions seeking adjustments for calendar year 2027 under the multiyear tariff framework covering 2025 to 2030.
Collectively, the 10 distribution companies have requested revenue requirements of approximately Rs2.64 trillion for 2027 to cover electricity distribution and supply costs.
The FPCCI said its Energy Advisory Committee had examined the companies’ tariff petitions, financial statements and supporting documents. The review focused on prior-year adjustments, power purchase costs, working capital requirements and returns on the regulatory asset base.
According to the business federation, a significant portion of the requested prior-year adjustments involves retrospective claims that require further verification before any approval.
The FPCCI also highlighted differences in the scale of claims submitted by individual distribution companies compared with their proposed annual distribution margins.
Islamabad Electric Supply Company (IESCO) sought prior-year adjustments exceeding 212 per cent of its proposed annual margin, while Sukkur Electric Power Company’s claims represented 113 per cent of its distribution margin.
Faisalabad Electric Supply Company’s claims accounted for 91 per cent of its distribution and supply margin. The corresponding figures for Multan and Quetta stood at 68 per cent and 60 per cent, respectively.
Meanwhile, Lahore, Peshawar and Gujranwala distribution companies reported claims equivalent to 41 per cent, 40 per cent and 32 per cent of their respective margins. Tribal Electric did not disclose comparable figures.
The FPCCI argued that these claims should not be treated as routine tariff adjustments without detailed scrutiny and supporting evidence.
The federation has asked NEPRA to include its objections in the tariff-setting process, require distribution companies to provide written responses and allow business organisations to participate in public hearings.
It has also called for a detailed breakdown of each claim instead of approving broad, lump-sum adjustments.
Distribution Companies Face Scrutiny Over Tariff Claims
Faisalabad Electric Supply Company has requested Rs535 billion in revenue requirements for 2027, including Rs57 billion in prior-year adjustments. The FPCCI has opposed Rs26 billion in claims related to post-retirement benefits and supplementary charges that it says were previously disallowed.
Gujranwala Electric Supply Company has sought Rs70.4 billion, including Rs17 billion in adjustments linked to outstanding receivables from Azad Jammu and Kashmir. Sukkur Electric has requested Rs68 billion, of which Rs36 billion relates to prior-year adjustments.
Lahore Electric Supply Company has proposed the highest revenue requirement at Rs759 billion, including approximately Rs33 billion in prior-year adjustments. The FPCCI has argued that Rs27 billion of these claims should be rejected because they have not been adequately verified.
IESCO has requested Rs525 billion in total revenue requirements, including Rs158 billion in prior-year adjustments. The federation said around 70 per cent of these adjustments involved disputed claims, non-cash items or amounts submitted without sufficient itemisation.
Peshawar Electric Supply Company has sought Rs233 billion for 2027, including Rs35 billion in prior-year adjustments. The FPCCI has challenged Rs33 billion associated with input tax claims dating back seven years, describing them as inadmissible.
NEPRA Urged to Review Claims Before Approval
The FPCCI has maintained that electricity tariff decisions should be based on verified costs, transparent calculations and proper supporting documentation.
It wants NEPRA to examine the disputed claims individually before allowing distribution companies to recover the amounts through consumer electricity bills.
The regulator’s review of the tariff petitions will be important for determining which adjustments, if any, can be included in future electricity tariffs.
