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Electricity consumers across Pakistan may soon face higher power bills as NEPRA reviews a proposed 45 paisa per unit increase in tariffs under the first quarterly adjustment for FY2025-26. The hearing followed requests from DISCOs and K-Electric, citing growing circular debt and operational losses.
The quarterly tariff adjustment is part of the power sector’s cost-recovery mechanism, allowing distribution companies to recover expenses related to generation and transmission. However, recurring adjustments and inefficiencies have fueled public concern over rising energy costs, especially amid inflationary pressure and low recovery rates.
During the hearing chaired by NEPRA Chairman Waseem Mukhtar, distribution companies demanded an adjustment of Rs8.41 billion for the last quarter. The companies argued that despite government relief measures such as the Prime Minister’s Rs7.41 per unit subsidy for three months mounting circular debt continues to threaten sector stability.
“Circular debt is increasing while the government’s packages for agriculture and industry add to the burden,” said a representative of the power companies.
Member Sindh Rafiq Sheikh warned that under the current structure, “circular debt will not end” unless systemic reforms are introduced. Similarly, NEPRA officials emphasized that losses, power theft, and poor recovery rates remain the core issues behind financial shortfalls.
The Power Division confirmed that losses have worsened due to low recovery, particularly in high-loss areas. NEPRA has completed its hearing and will now forward its recommendation to the federal government for final approval.
Energy experts say if approved, the tariff increase could impact industrial competitiveness and consumer affordability, urging the government to pair adjustments with strict anti-theft measures and operational reforms.
“Without addressing inefficiency and theft at the root, tariff hikes only burden honest consumers,” said an energy policy analyst.
