LESCO seeks tariff hike as power consumption drops
The Lahore Electric Supply Company (LESCO) has approached the National Electric Power Regulatory Authority (NEPRA) seeking approval to recover an additional Rs2.35 billion from electricity consumers under the quarterly tariff adjustment mechanism. If approved, the extra amount could be passed on to consumers through upcoming electricity bills.
LESCO cites rising costs and lower power consumption
According to documents submitted to NEPRA, the requested recovery covers costs incurred between April and June, including differences in power generation and sales, capacity charges, higher fuel costs, transmission expenses, the impact of net metering consumers, and other operational costs.
LESCO argued that a decline in electricity consumption has increased the cost of supplying power on a per-unit basis, making a tariff adjustment necessary to recover fixed expenses.
The company said household electricity consumption fell by 8 percent compared with the same period last year, while commercial consumers used 7 percent less electricity. Overall, electricity demand across LESCO's service area declined by around 4 percent.
NEPRA to decide on tariff adjustment request
According to LESCO, reduced electricity sales make it more difficult to recover fixed system costs, forcing the utility to seek adjustments in electricity tariffs.
The final decision on the quarterly tariff adjustment request will be made by NEPRA after reviewing the company's petition and supporting data.
If the regulator approves the request, the additional Rs2.35 billion could be recovered from consumers through future electricity bills, potentially increasing power costs for millions of customers in Lahore and surrounding areas.
The development comes as electricity consumers across Pakistan continue to face high energy costs amid ongoing efforts by power distribution companies to recover operational expenses and maintain the country's electricity network.