ISLAMABAD(National Times)- The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has opposed an additional Rs268 billion burden on consumers sought by former Wapda distribution companies (Discos) through prior-year adjustments in power tariffs.
In a comprehensive representation, the country’s top business body, representing large and small businesses, including manufacturing industries, asked the National Electric Power Regulatory Authority (Nepra) to reject the “inflated claims” previously disallowed by the regulator or disputed by third parties.
The representation follows tariff petitions filed by 10 Discos seeking adjustments to the indexation of multiyear tariffs (2025-30) for calendar year 2027 and other consumer-end tariff adjustments.
Collectively, the Discos have claimed Rs2.64 trillion in revenue requirements for CY2027 on account of distribution and supply of power.
The FPCCI said it had constituted a special Energy Advisory Committee (EAC) to review tariff filings, including claims related to working capital, power purchase prices, prior-year adjustments (PYAs) and returns on revenue base.
The committee found that Discos were seeking to pass hundreds of billions of rupees in prior-year adjustments on to consumers.
It said a substantial portion of these claims was retrospective, contested by third parties or previously disallowed by Nepra. Some claims were inconsistently calculated against the Discos’ own formulas or lacked sufficient disclosure for independent verification.
The EAC reviewed all 10 Discos’ CY2027 indexation and PYA petitions, including financial statements and annexures, on behalf of FPCCI’s constituent chambers, trade and industry associations.
According to the FPCCI, Islamabad Electric Supply Company’s (Iesco) PYA claims exceeded 212 per cent of its proposed annual margin, while Sukkur Electric’s claims amounted to 113pc of its distribution margin.
Faisalabad Electric’s PYA claims amounted to 91pc of its distribution and supply margin, followed by Multan at 68pc and Quetta at 60pc.
The corresponding shares for Lahore, Peshawar and Gujranwala electric companies stood at 41pc, 40pc and 32pc, respectively. Tribal Electric did not disclose the figures.
“These are not routine formula-based true-ups and ought not to be approved as such,” the FPCCI said.
The representation included itemised objections for each Disco and a cross-company comparison, identifying disputed amounts, grounds for objections and proposed disallowances based on petitions, financial statements and annexures published by Nepra.
The FPCCI demanded that its objections be made part of each Disco’s tariff-setting process, including public hearings, and that the companies respond in writing to specific objections before the hearings.
It also urged Nepra to reject undifferentiated lump-sum PYA claims, require component-wise substantiation and allow trade and business bodies to participate in hearings.
Faisalabad Electric has sought Rs535bn in revenue requirements for 2027, including Rs57bn in PYAs. The FPCCI called for rejecting Rs26bn in claims involving 11-year post-retirement benefits and previously disallowed supplementary charges.
Gujranwala Electric sought Rs70.4bn, including Rs17bn in PYAs linked to 19-year-old Azad Jammu and Kashmir sovereign receivables. Sukkur Electric claimed Rs68bn, including Rs36bn in PYAs.
Lahore Electric sought the highest revenue requirement, Rs759bn, including approximately Rs33bn in PYAs. The FPCCI said Rs27bn in claims were liable to be rejected because they had not been verified.
Iesco submitted the largest PYA claim of Rs158bn within its Rs525bn revenue requirement. The FPCCI said 70pc of Iesco’s PYA claims were either disputed or involved noncash items, had been filed as a lump sum and should be rejected.
Peshawar Electric sought Rs233bn in revenue requirements, including Rs35bn in PYAs. Of these, Rs33bn related to seven-year-old input tax claims that the FPCCI described as inadmissible.
