ISLAMABAD: Electricity consumers across the country, including Karachi, are set to receive relief of Rs1.93 per unit in their bills for three months after the National Electric Power Regulatory Authority (NEPRA) approved, in principle, a negative adjustment of about Rs64 billion for the first quarter (January–March) of 2026.

The relief is primarily driven by higher electricity consumption during the period, according to data submitted by power distribution companies (Discos).

During a public hearing on the Quarterly Tariff Adjustment (QTA), industry representatives from Karachi and Lahore appreciated the Power Division and NEPRA for maintaining electricity supply at relatively reasonable rates despite rising global energy prices.

Chief Financial Officer (CFO) of the Power Planning and Monitoring Company (PPMC), Naveed Qaiser, said the total amount to be passed on to consumers stands at Rs63.937 billion, adding that the per-unit relief will vary depending on monthly consumption patterns.

He noted that electricity demand on the Discos network grew by 11 per cent in the first quarter of 2026. The domestic sector recorded a 14.2 per cent increase, commercial 6.8 per cent, general services (including schools and mosques) 5.5 per cent, and industrial consumption surged by 22.9 per cent, while bulk consumption (including housing societies) rose marginally by 0.2 per cent.

In contrast, agricultural demand declined by 47 per cent, largely due to the shift of Balochistan consumers towards solarisation.

Responding to queries, Qaiser said the number of protected consumers currently stands at 22 million. As an initial step, the government has asked these consumers to register through a QR code system to better identify beneficiaries of subsidised electricity. He clarified that no decision has yet been taken to revise subsidies, and any future changes would follow due process at NEPRA.

In response to a question by Member (Tariff and Finance) Amina Ahmed, he added that alternative mechanisms are also available to identify protected consumers who fail to register through the QR system.

Tanveer Barry of the Karachi Chamber of Commerce and Industry (KCCI) welcomed the Rs1.93 per unit negative adjustment but cautioned that a positive Fuel Charges Adjustment (FCA) of Rs1.73 per unit for April 2026 is expected to offset the relief in June.

He observed that Pakistan’s installed generation capacity stands at around 45,000MW against a peak demand of approximately 26,000MW, warning that the addition of new plants — potentially raising capacity to 70,000MW — would further increase capacity payments.

Barry also warned of an intense summer due to a possible super El Niño effect and urged authorities to minimise load-shedding on humanitarian grounds, calling on Discos and K-Electric to establish emergency response centres for uninterrupted supply.

Industrial consumers Aamir Sheikh and Rehan Javed also praised the Power Minister and his team for improved management of electricity supply and pricing.

Of the total negative adjustment of Rs63.939 billion, Rs36.837 billion is attributed to capacity charges, which remain a key driver of tariff increases. Despite renegotiations with Independent Power Producers (IPPs) and government-owned plants, including nuclear facilities, capacity payments continue to weigh heavily on consumers.

Another major concern for both the government and consumers remains high losses and low recovery rates of Discos, an issue consistently highlighted in NEPRA’s State of Industry Report.

According to submitted data, the distribution-wise breakup of the negative adjustment includes: IESCO (Rs6.371 billion), LESCO (Rs7.907 billion), GEPCO (Rs5.080 billion), FESCO (Rs10.450 billion), MEPCO (Rs6.342 billion), PESCO (Rs8.629 billion), HESCO (Rs10.140 billion), QESCO (Rs2.595 billion), SEPCO (Rs2.914 billion), TESCO (Rs3.013 billion), and HAZECO (Rs495 million).

The requested amount for variable operation and maintenance (O&M) stands at a positive Rs4.876 billion. Use of System Charges (UoSC) and Market Operator Fee (MOP) reflect a negative adjustment of Rs11.243 billion, while the impact of transmission and distribution (T&D) losses on monthly Fuel Charges Adjustment (FCA) is estimated at a positive Rs2.777 billion. However, the impact of incremental units is projected to result in a negative adjustment of Rs23.510 billion.—MUSHTAQ GHUMMAN