Pakistan's power distribution companies (Discos) have sought a net increase of Rs23.3 billion in electricity tariffs for the third quarter of calendar year 2026, driven primarily by higher capacity payments, transmission costs and distribution losses, according to a Nepra notice. The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on November 17 to examine the quarterly (July-September quarter) adjustment requests which, if approved, will also apply to consumers of K-Electric under the federal government's uniform tariff policy.

The 11 ex-Wapda distribution companies (XWDISCOs) have sought a combined positive adjustment of Rs23.326 billion, including Rs38.917 billion on account of capacity charges, Rs7.79 billion for the impact of transmission and distribution losses on the monthly fuel cost adjustment (FCA) and Rs5.597 billion in variable operation and maintenance costs.

These increases are partly offset by a negative adjustment of Rs29.252 billion arising from incremental electricity units, while the impact of use-of-system charges and CPPA-G agency fee accounts for a net positive Rs272 million. Capacity charges, the largest component of the requested adjustment, include the impact of net metering and net billing units, reflecting ongoing structural dynamics in the country's power sector.

NEPRA said the distribution companies had also included the impact of transmission and distribution losses in the September FCA, although the authority had not yet notified the fuel cost adjustment for that month. The calculations are strictly based on the FCA requested by the Central Power Purchasing Agency-Guarantee (CPPA-G), which manages power procurement on behalf of distribution companies.

The quarterly adjustment covers July to September 2026 and includes capacity charges, transmission charges, market operator fees, variable operation and maintenance costs, incremental electricity consumption and transmission and distribution losses. Consumer advocacy groups and industrial representatives are expected to raise serious concerns during the upcoming public hearing regarding the mounting burden of capacity payments and system inefficiencies.

Any final decision by the regulatory authority on these petitions will have a direct bearing on electricity bills for millions of domestic, commercial, and industrial consumers across the country.