Islamabad Electric Supply Company (IESCO) has proposed raising its consumer-end electricity tariff for calendar year 2027 to Rs43.54 per kilowatt-hour from Rs28.20, an increase of approximately 54.4%. The proposal was discussed at a National Electric Power Regulatory Authority (NEPRA) public hearing on October 15, according to reports published on October 16. It is a request, not an approved tariff increase.

The proposed difference is Rs15.34 per unit. The figures concern the tariff presented in IESCO’s regulatory petition and should not be treated as a prediction of the exact change to every household’s final bill, which can vary with tariff categories, taxes and other adjustments.

Why IESCO wants the increase

Business Recorder reported that IESCO, which is among the power distribution companies being considered for privatisation, wants to improve its financial position ahead of a possible sale. The company also requested Rs157.864 billion in prior-year adjustments to address accumulated obligations.

The proposed recovery of earlier costs raises questions about how much financial pressure should be passed on to current electricity users. Profit by Pakistan Today reported that NEPRA questioned whether the full amount should be recovered at once.

What happens next

NEPRA must scrutinise the application and make its regulatory determination. The regulator’s website lists the hearing notice and related material concerning IESCO’s 2027 multi-year tariff adjustments. Until a decision is issued and applicable tariff changes are notified, the requested Rs43.54 rate should not be described as taking effect.

For households and businesses in IESCO’s service area, the key issues are whether the regulator accepts the company’s cost calculations, how any past liabilities are treated and whether any approved changes are phased in.

The development is separate from recent grid-maintenance announcements and from tariff cases involving other electricity distributors.

Sources

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