After the electricity distribution companies (DISCOs) submitted a request for quarterly adjustment for July-September 2025, consumers have rejected the increase and expressed serious concerns.

In the request, electricity consumers took the position that capacity payments have been increased once again under the quarterly adjustment, which has further increased the circular debt.

According to consumers, electricity bills already include a surcharge of Rs. 3 per unit, and if the current trend continues, the circular debt will continue to increase.

On the other hand, NEPRA officials say that no written details have been received regarding the government subsidy or relief package yet.

A representative of Jamaat-e-Islami Karachi said during the hearing that the re-increase in capacity charges is “extremely worrying” and will put further financial pressure on the public.

According to NEPRA officials, there are two major reasons for the increase in circular debt — an increase of Rs87 billion in losses of discos and a decrease of Rs84 billion in the recovery rate.

Officials say that if this situation continues, the financial sustainability of the power sector may be further jeopardized.