NEPRA Member Files Dissent on Rs332bn National Grid Revenue Approval
NEPRA's tariff and finance member Amina Ahmed has filed a dissenting note against the regulator's 2-1 majority approval of Rs332 billion in revenue for the National Grid Company covering FY2022-23 to FY2024-25. Her key objection challenges the accounting treatment of over Rs19 billion in CPPA liabilities, which she argues was incorrectly reclassified as a loan, distorting NGC's equity base and the permissible return allowed to the company.
NEPRA (the National Electric Power Regulatory Authority) member for tariff and finance, Amina Ahmed, has filed a formal dissenting note against a 2-1 majority decision that approved Rs332 billion in revenue for the National Grid Company (NGC) across three financial years — revenue that will be recovered from all electricity consumers nationwide through use-of-system charges (UoSC) embedded in their tariffs.
What NEPRA Approved
The majority ruling cleared a combined three-year revenue requirement of Rs332 billion for NGC — formerly NTDC (the National Transmission and Despatch Company) — covering FY2022-23, FY2023-24, and FY2024-25. The approved breakdown is:
- FY2022-23: Rs81.5 billion
- FY2023-24: Rs95.6 billion (a 17 per cent rise year-on-year)
- FY2024-25: Rs155 billion (a sharp 62 per cent rise)
NGC had originally sought Rs478 billion for the same period — meaning the regulator trimmed the claim by roughly Rs146 billion. The approved revenue translates into UoSC rates of Rs382 per kilowatt per month for FY23, Rs455 per kW per month for FY24, and Rs710 per kW per month for FY25. These charges are incorporated into the end-consumer tariff paid by households and businesses across all DISCOs (Distribution Companies), including LESCO, IESCO, MEPCO, PESCO, HESCO, QESCO, FESCO, TESCO, GEPCO, and K-Electric.
The Dissenting Note: Key Objections
Member Ahmed's dissent centres on what she calls the mirror image problem — a situation where receivables and non-transferred assets on NGC's books are not being treated symmetrically, producing what she argues is a distorted picture of the company's financial position.
Her primary objection targets the treatment of over Rs19 billion recorded in NGC's FY2023-24 financial statements as a payable to CPPA (the Central Power Purchasing Agency) under current liabilities. The majority decision reclassified this amount as a loan and subtracted it from NGC's assets when calculating the company's equity. A lower equity base automatically reduces the permissible return on equity the regulator can allow — which in turn lowers the approved revenue requirement.
Ahmed's position is that a liability to CPPA cannot be reclassified as a loan without a corresponding, matching receivable on the other side of the ledger. Without that mirror entry, she argues, the accounting treatment is inconsistent and the revenue determination built on it is structurally flawed.
Business Transfer Agreement in Dispute
Part of the complexity traces back to the June 2015 Business Transfer Agreement (BTA), under which NGC transferred certain assets and liabilities. Ahmed's note suggests that assets not transferred under the BTA — and receivables linked to them — are being handled inconsistently in the current determination, creating the mirror-image distortions she flags.
Because the majority ruling is already issued on a 2-1 vote, the dissenting note does not overturn the Rs332bn approval. It does, however, place a formal regulatory objection on record that can be cited in future tariff reviews, appeals, or legal proceedings relating to NGC's revenue and UoSC levels.
Frequently Asked
Questions about this story
What are use-of-system charges and how do they affect my electricity bill?
Use-of-system charges (UoSC) are fees paid to NGC for use of the national transmission grid, and they are embedded in the per-unit tariff billed to all consumers. NEPRA has approved a UoSC of Rs710 per kilowatt per month for FY2024-25 — one component of the total tariff recovered through your DISCO bill each month.How much did NEPRA reduce NGC's original revenue request?
NGC sought Rs478 billion across three years but NEPRA's majority approved Rs332 billion — a reduction of roughly Rs146 billion. The cuts were steepest in FY23 and FY24, where NEPRA allowed Rs81.5bn and Rs95.6bn against NGC's claims of Rs112bn and Rs163bn respectively.Does the Rs332 billion NGC revenue approval apply to K-Electric customers in Karachi?
UoSC approved by NEPRA apply to power transmitted over the national grid and are incorporated into consumer-end tariffs across all distribution companies. K-Electric customers in Karachi are generally affected, though K-Electric has its own separate tariff determination that may handle specific cost components differently.What does Amina Ahmed's dissenting note actually change for the approved Rs332bn?
A dissenting note does not overturn the majority decision, so the Rs332 billion approval remains in force. However, it formally places accounting objections on the regulatory record, which can be cited in future tariff reviews, NEPRA appeals, or court proceedings related to NGC's revenue and UoSC rates.When will the new UoSC rates appear in consumer electricity bills?
The approved UoSC rates — Rs382 per kW per month for FY23, Rs455 for FY24, and Rs710 for FY25 — cover past financial years and are being incorporated into consumer tariffs through NEPRA's regular determination process. The exact pass-through timeline depends on when NEPRA formally notifies these rates to individual DISCOs for billing.
Free Newsletter
Get Pakistan's Energy Week in 3 Minutes
NEPRA decisions, tariff moves, solar updates, and load shedding news — one short email every week. No spam.
One email per week · Unsubscribe anytime · No spam
