The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has formally opposed a proposed financial burden of Rs268 billion on electricity consumers, which former Wapda distribution companies (Discos) are seeking through prior-year adjustments in power tariffs.
Representing both large and small enterprises, including the country’s manufacturing sector, the apex trade body submitted a comprehensive representation to the National Electric Power Regulatory Authority (Nepra). In its submission, the FPCCI called on the power sector regulator to dismiss what it described as inflated claims that were either previously disallowed by Nepra or remained disputed by third parties.
Discos Seek Multiyear Indexation and Rs2.64tr in Revenue
The FPCCI’s intervention comes in response to formal tariff petitions submitted by 10 power distribution companies. The utilities are seeking adjustments to the indexation of multiyear tariffs spanning the 2025 to 2030 period for the calendar year 2027, along with various other consumer-end tariff adjustments.
Across their petitions, the 10 Discos have jointly claimed a total revenue requirement of Rs2.64 trillion for calendar year 2027 to cover costs related to the supply and distribution of electricity across their respective service territories.
Energy Advisory Committee Flags Disputed Claims
To evaluate the tariff filings, the FPCCI constituted a specialized Energy Advisory Committee (EAC). The committee undertook a review of the components outlined in the utilities’ requests, focusing on elements including working capital, power purchase prices, prior-year adjustments (PYAs), and the returns claimed on the revenue base.
The advisory committee established that distribution companies were attempting to transfer hundreds of billions of rupees in prior-year adjustments directly onto power consumers. A substantial portion of these amounts, the committee determined, consists of unverified demands and previously disallowed adjustments that should not be admitted into consumer-end tariffs.
Demand for Written Responses and Public Hearings
In addition to urging Nepra to turn down the disputed and unverified claims, the FPCCI has demanded detailed written responses addressing the concerns highlighted in its representation.
The business body has also called for active participation in the regulator’s forthcoming public hearings on the tariff petitions to contest the proposed revenue burdens on behalf of commercial, industrial, and domestic consumers.
