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Public reaction to quarterly adjustment: Increase in capacity charges and circular debt at new levels

Muhammad Ali (Web Desk Reporter) by Muhammad Ali (Web Desk Reporter)
November 6, 2025
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Islamabad: During the hearing held at the national energy regulator Nepra, electricity consumers have raised strong objections to the quarterly adjustment application of discos.

Consumers say that there was an extraordinary increase in capacity payments during the period July-September 2025, which has increased the circular debt once again.

The participants took the position that the public is already paying a surcharge of Rs 3 per unit in bills, while the debt volume is continuously increasing due to government policies.

Nepra officials said that no written instructions have been received yet about the government’s possible package or subsidy.
Officials explained that there are two main reasons for the increase in circular debt —

  1. Increase in losses of discos by Rs 87 billion
  2. Decrease in collections by Rs 84 billion

A representative of Jamaat-e-Islami Karachi said that the renewed increase in capacity charges is alarming, which will lead to further financial burden on electricity consumers.

According to energy experts, if the performance of power companies does not improve, the circular debt could exceed Rs 3,000 billion in the coming months.

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Muhammad Ali is a Web Desk Reporter at The Pakistan Observer, contributing to the publication’s digital news coverage with a focus on timely, accurate and reader-friendly reporting.

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