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The Peshawar Electric Supply Company (PESCO) and Tribal Areas Electric Supply Company (TESCO) have formally petitioned NEPRA for a significant electricity tariff increase under the Multi-Year Tariff (MYT) plan covering FY 2025–2030, citing operational costs, rising power demand, and infrastructure needs.
Pakistan’s power distribution companies have long struggled with circular debt, energy losses, and outdated infrastructure. To stabilize their financial position, both PESCO and TESCO are seeking long-term tariff adjustments a move that could impact millions of consumers in Khyber Pakhtunkhwa and tribal areas.
| Company | Proposed Tariff (FY 2025–26) | Target Tariff (FY 2029–30) | Revenue Requirement (FY 2025–26) |
| PESCO | Rs. 41.21 per unit | Rs. 38.75 per unit | Rs. 384 billion+ |
| TESCO | Rs. 3.73 incremental hike | Rs. 5.06 incremental hike | Rs. 60.93 billion (PPP) |
TESCO’s petition highlights a 12.02% current system loss, which it aims to cut to 9.6% by 2030 through grid modernization. It projects unit sales growth from 1,352 million in FY 2025–26 to 1,433 million units by FY 2029–30.
“The proposed tariff adjustments are essential to sustain network improvements, operational efficiency, and meet growing consumer demand,” a TESCO spokesperson stated.
TESCO also seeks NEPRA’s approval for a weighted average cost of capital (WACC) starting at 13.5%, gradually reducing to 11.4% by FY 2029–30, ensuring financial predictability across the period.
NEPRA will conduct a public hearing on November 3, 2025, to evaluate both petitions. While the plan could help utilities maintain cash flow and system upgrades, analysts warn it might add more pressure on consumers already struggling with record-high power costs.
“Tariff rationalization should balance the utilities’ recovery needs with consumer affordability,” said an energy expert.
