ISLAMABAD: The Central Power Purchasing Agency (CPPA) has proposed an approximately 8% increase in the average power purchase price for distribution companies to 27.309 rupees per unit in 2027, up from 25.320 rupees approved for 2026.
The National Electric Power Regulatory Authority held a public hearing Tuesday to examine the proposal, which will form the basis for rebasing consumer-end electricity tariffs from Jan. 1, 2027.
Under its base-case scenario, CPPA-G projected total power purchase costs of 3.552 trillion rupees against electricity sales of 130,081 gigawatt-hours, assuming 2.6% demand growth and no load-shedding.
Capacity payments account for the largest share of projected costs at 1.914 trillion rupees, equivalent to 14.717 rupees per unit. Fuel costs are estimated at 1.319 trillion rupees, or 10.141 rupees per unit, while transmission and market-related charges are projected at 248.3 billion rupees.
CPPA-G presented six pricing scenarios, with the average power purchase price ranging from 25.883 rupees per unit under the ideal case to 29.255 rupees per unit under the worst case.
The base-case projections assume an exchange rate of 279 rupees per dollar, domestic inflation of 8.2% and a Karachi Interbank Offered Rate of 11.7%. Nepra directed CPPA-G to revise its KIBOR assumption to 12%, which could further affect projected electricity costs.
During the hearing, Nepra Chairman Waseem Mukhtar sought clarification on RLNG supplies, exchange-rate assumptions, Brent crude prices and discrepancies in electricity demand forecasts.
Industrial representatives opposed the continuation of the incremental electricity package, arguing that it benefited a limited number of industries while increasing costs for other consumers. They also questioned the high capacity payments despite previous negotiations with independent power producers and demanded reductions in transmission losses, administrative expenses and reliance on expensive imported fuels.
Industry representatives urged Nepra to ensure that the average consumer-end electricity tariff remained below the 2026 level of 33.38 rupees per unit. They also sought greater transparency in fuel cost adjustments, demand projections and transmission constraints before the regulator finalizes the tariff determination.
