ISLAMABAD: The Peshawar Electric Supply Company (PESCO) and the Tribal Areas Electricity Supply Company (TESCO) have requested fresh power tariff increases under a five-year Multi-Year Tariff (MYT) plan covering FY 2025–2030.
According to the petitions filed with the National Electric Power Regulatory Authority (NEPRA), both utilities have sought tariff adjustments to support operational investments, improve grid reliability, and meet growing electricity demand across Khyber Pakhtunkhwa and adjoining regions.
🔹 PESCO’s Tariff Proposal
PESCO has proposed a tariff of Rs. 41.21 per unit for FY 2025–26, which would gradually decline to Rs. 38.75 per unit by FY 2029–30.
The company’s revenue requirement exceeds Rs. 384 billion for FY 2025–26, with incremental adjustments projected for each subsequent fiscal year.
PESCO’s proposal aims to recover system losses, enhance network stability, and fund ongoing infrastructure development to meet regional energy needs.
🔹 TESCO’s Proposed Increases
TESCO has requested an average tariff rise of Rs. 4.35 per unit over the five-year control period. It argues that the increase is essential to sustain network improvements, fund capacity expansion, and maintain operational efficiency.
A third-party loss study commissioned by TESCO found total system losses at 12.02 percent, but the company expects to reduce these to 9.6 percent through infrastructure investments and grid modernization.
TESCO projects power demand to grow steadily — from 1,352 million units in FY 2025–26 to 1,433 million units in FY 2029–30 — while maintaining Transmission & Distribution (T&D) losses near 8.6 percent.
💰 Financial Projections
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Power Purchase Projections (PPP): Rs. 60.93 billion (FY 2025–26) → Rs. 78.22 billion (FY 2029–30)
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Distribution Margin: Rs. 5.04 billion → Rs. 7.26 billion over the control period
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Other Income: Rs. 736 million → Rs. 960 million
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Weighted Average Cost of Capital (WACC): 13.5% (FY 2025–26) → 11.4% (FY 2029–30)
TESCO’s petition also seeks incremental unit price hikes of Rs. 3.73, Rs. 3.96, Rs. 4.32, Rs. 4.69, and Rs. 5.06 per unit across the five years.
🏛️ NEPRA Hearing Scheduled
NEPRA will hold a public hearing on November 3, 2025, to review the petitions and determine the final tariff adjustments under the Multi-Year Tariff framework.
If approved, the new tariff structure will provide long-term revenue predictability for both utilities but could add pressure on consumers already facing record-high energy costs.
