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FPCCI asks NEPRA to reject Rs268bn in old DISCO claims headed for 2027 electricity bills

Ten power distribution companies want prior-year adjustments built into their 2027 tariffs. IESCO alone claims Rs158bn, and the business federation says most of it is disputed.

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The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked NEPRA to reject much of the Rs268 billion that the former WAPDA distribution companies want to recover from consumers through prior-year adjustments (PYAs) in their electricity tariffs for calendar year 2027, Dawn reported on Monday 12 October 2026.

Ten DISCOs have filed petitions with the National Electric Power Regulatory Authority to index their multi-year tariffs for 2025 to 2030 to the 2027 year. Together they are asking for Rs2.64 trillion in revenue requirements for distribution and supply. The PYAs are the part of that bill that recovers costs from earlier years, and FPCCI's Energy Advisory Committee says they are "not routine formula-based true-ups": many are old, contested, previously disallowed or not disclosed in enough detail for anyone to check.

The biggest claims

DISCO2027 revenue requirementPrior-year adjustmentsFPCCI's objection
IESCO (Islamabad)Rs525bnRs158bn70% disputed or non-cash, filed as a lump sum
SEPCO (Sukkur)Rs68bnRs36bn113% of its distribution margin
PESCO (Peshawar)Rs233bnRs35bnRs33bn is seven-year-old input tax claims
LESCO (Lahore)Rs759bnabout Rs33bnRs27bn not verified
FESCO (Faisalabad)Rs535bnRs57bnRs26bn for 11-year-old pension costs and charges already disallowed
GEPCO (Gujranwala)Rs70.4bnRs17bnlinked to 19-year-old AJK receivables

FPCCI also put MEPCO's PYA claim at 68% of its margin and QESCO's at 60%. IESCO's claim equals 212% of its proposed annual margin, the highest ratio of all.

What FPCCI wants

  • Reject lump-sum PYA claims that are not broken down item by item.
  • Make each DISCO prove each component and answer FPCCI's objections in writing before the hearings.
  • Let trade and business bodies take part in NEPRA's public hearings on each petition.

What it means for your bill

NEPRA has not yet set hearing dates, and the petitions do not translate the claims into a per-unit figure. But whatever NEPRA allows becomes part of the uniform tariff the federal government notifies, so a larger allowed PYA means a higher base rate per unit for households and industry across the country from 2027, unless the government absorbs it through subsidy. Business groups have repeatedly argued that high industrial tariffs are already hurting exports.

To see how a change of a rupee or two a unit would hit your own bill, use our electricity bill calculator with last month's units, or work out your monthly consumption first with the electricity units calculator.

Frequently asked questions

What are prior-year adjustments in electricity tariffs?
They are costs a distribution company says it incurred in earlier years but did not recover, which it asks NEPRA to add to the next year's tariff. FPCCI wants Rs268bn of such claims for 2027 rejected or proven item by item.
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Tags:DISCOsNEPRAelectricity tariffIESCO
Topics:LESCONEPRA

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