Power firms seek Nepra's approval to pass Rs52 billion relief to consumers

ISLAMABAD: Power distribution companies have requested the National Electric Power Regulatory Authority (Nepra) to pass relief of over Rs52 billion to consumers under the quarterly adjustment mechanism.

According to Nepra, electricity firms' applications seeking a total reduction of Rs52.12 billion have been received for the second quarter adjustment of the current fiscal year.

The requested adjustments include a Rs50.66 billion reduction in capacity charges and a Rs2.66 billion decrease in transmission and distribution losses.

However, an increase of Rs2.69 billion has been sought under operations and maintenance costs.

The adjustment for October-December 2024 will also be applicable to K-Electric consumers. Nepra will conduct a hearing on these applications on February 12, and the decision will impact consumers across the country, including Karachi.

NEPRA sources said that it is premature to determine how much the per-unit electricity rate will decrease before the hearing.

It is pertinent to mention that the government had previously shut down five independent power producers (IPPs) with a total capacity of 2,400 megawatts following negotiations.

The expected relief of over Rs52 billion is largely attributed to the closure of these IPPs.