Fesco Seeks Rs 28 Per Unit Tariff Increase
By Salman Khan
Faisalabad Electric Supply Company (FESCO) has sought a massive increase in electricity rates up to Rs 28 per unit in a Multi-year tariff for 2025-26.
The National Electric Power Regulatory Authority (Nepra) conducted a public hearing on Tuesday to consider the proposed increase in electricity rates for the consumers of Fesco.
The consumers of electricity have called for introducing a ‘uniform power tariff’ while shelving peak and off-peak hours to increase the use of electricity.NEPRA imposes Rs 26m fine on Fesco
They say that the government introduced the peak and off-peak hours when there had been an issue of load shedding in the country due to low installed capacity.
The government had introduced higher electricity rates for electricity consumers to discourage the use of electricity in peak hours.
The intervenors during the public hearing conducted by the National Electric Power Regulatory Authority (Nepra) relating to MYT for Fesco for the year 2025-26 said that the country had now surplus power and therefore the government should abolish the different rates of electricity for peak and off-peak hours.
They said that the government should introduce a uniform tariff for the consumers to encourage the use of electricity.
Earlier, the power distribution companies had informed the power regulator that the pattern of the peak hour time had also changed after the induction of solar electricity through net metering.
Earlier, the off-peak time used to be in the evening but it had now shifted to 1 am at night when electricity consumers were using power in high volume.
FESCO has requested significant changes in various cost components. A key highlight of the request is a massive surge in the Power Purchase Price, which FESCO has called for the power purchase price of Rs. 389.053 billion.
This dramatic increase contributes significantly to the overall Revenue Requirement Total, which FESCO has requested to be Rs. 505.432 billion, a considerable rise from the previous Rs. 80.003 billion.
This adjustment request, if approved, would lead to a substantial increase in the average tariff for consumers, escalating from Rs. 5.37 per kWh to Rs. 33.76 per kWh.
The company is seeking an O&M cost of Rs 44 billion from the previous Rs 34 billion, registering an increase of Rs 10 billion.
It is also seeking an increase in net margin of Rs 10 billion from Rs 54 billion to Rs 64 billion.
It has informed the transmission and distribution losses at 8 percent.
