Pakistan’s top business body has asked the power regulator to reject an additional Rs268bn power tariff burden that the distribution companies want to pass on to consumers through prior-year adjustments. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said many of the claims were inflated, disputed, or had already been disallowed once.
The objection lands in the middle of a large tariff round. Ten former Wapda distribution companies, known as Discos, have filed petitions to adjust the indexation of their multiyear tariffs for calendar year 2027. Together, they have claimed Rs2.64 trillion in revenue requirements for 2027 from the distribution and supply of power.
Rs268bn power tariff burden: what the FPCCI found
The FPCCI set up a special Energy Advisory Committee to review the filings. The committee examined all 10 Discos’ indexation and prior-year adjustment petitions, along with their financial statements and annexures. It then filed a detailed representation with the National Electric Power Regulatory Authority (Nepra).
Its central finding was that the Discos were trying to recover hundreds of billions of rupees in old adjustments through new bills. A substantial portion of those claims was retrospective, the committee said. Third parties had contested some of them. Nepra itself had disallowed others in earlier decisions. Some claims were also calculated in ways that did not match the Discos’ own formulas, or lacked enough disclosure for anyone to verify them independently.
The scale varied sharply by company. Islamabad Electric’s prior-year claims exceeded 212 per cent of its proposed annual margin. Sukkur Electric’s claims came to 113 per cent of its distribution margin. Faisalabad Electric stood at 91 per cent, followed by Multan at 68 per cent and Quetta at 60 per cent. The shares for Lahore, Peshawar and Gujranwala were 41, 40 and 32 per cent. Tribal Electric did not disclose its figures.
Some individual petitions drew specific objections. Faisalabad Electric has sought Rs535 billion in revenue requirements for 2027, including Rs57 billion in prior-year adjustments. The FPCCI asked Nepra to reject Rs26 billion of that, covering 11-year post-retirement benefits and supplementary charges it said had been disallowed before. Gujranwala Electric sought Rs70.4 billion, including Rs17 billion in prior-year adjustments.
What the business body wants Nepra to do
The FPCCI made four practical demands. First, its objections should become part of each Disco’s tariff-setting process, including the public hearings. Second, each company should answer the specific objections in writing before those hearings. Third, Nepra should reject lump-sum adjustment claims that are not broken down, and should require component-wise proof for every amount. Fourth, trade and business bodies should be allowed to take part in the hearings.
The timing gives the representation weight. Nepra is scheduled to hear the 10 companies over three afternoons, from October 13 to 15, in Islamabad and online. So the FPCCI’s objections will be tested in public within days, company by company.
Why households should follow a business fight
This dispute is about industrial tariffs on paper, but the same adjustment machinery reaches household bills. Consumers are already paying a Rs1.11 per unit fuel adjustment in October billing, and our explainer on the October 2026 electricity bill shows how those charges stack up. A separate analysis found that power tariffs have risen 32 per cent in a year, which is a main driver of inflation. Tariff disputes are also already in the courts, as the K-Electric interim relief case shows, although Karachi’s utility sits outside this Disco round.
If Nepra accepts the old claims, the cost lands in future bills. If it rejects them, the Discos must absorb losses they say they have already carried. Either way, the hearings this week will show how much of the Rs268 billion survives scrutiny. (Source: Dawn)
Frequently asked questions
What is the Rs268bn power tariff burden?
It is the additional amount the FPCCI says the 10 Discos want to recover from consumers through prior-year adjustments, on top of their normal tariffs. The FPCCI has asked Nepra to reject the claims.
How much are the Discos seeking for 2027 in total?
The 10 companies have claimed Rs2.64 trillion in combined revenue requirements for calendar year 2027 in their multiyear tariff indexation petitions.
When will Nepra decide?
Nepra is scheduled to hold public hearings for the 10 companies from October 13 to 15. The FPCCI wants its objections heard in that process and answered in writing by each company beforehand.
