Nepra flags CPPA power proposal as ‘deficient’ as consumers face potential tariff hike | The Express Tribune

ISLAMABAD:

Electricity consumers are bracing for an increase in their monthly bills because of a potential spike in the power purchase price.

The power-sector regulator held a public hearing on Tuesday to consider a proposal for revising the national power purchase price, which industry representatives warned would keep energy expensive and stifle economic growth.

The Central Power Purchasing Agency-Guarantee (CPPA) presented its case to the National Electric Power Regulatory Authority (Nepra), chaired by Wasim Mukhtar. In the proposal for setting the purchase price for fiscal year 2026, the CPPA estimated that the cost of electricity purchase would range between Rs25.69 and Rs26.69 per unit.

Price determination is a critical process that directly influences the tariffs paid by households and industries across the country.

During the hearing, the CPPA based its presentation on projections for electricity demand, the rupee-dollar exchange rate and fuel price estimates. However, the presentation was immediately met with scepticism from the regulator.

Nepra member Rafiq Ahmed Sheikh declared CPPA’s submission incomplete and deficient, raising questions about the accuracy of the underlying data. Nepra indicated that it would consult industry stakeholders before taking a final decision.

Industry leaders voiced strong concern over the proposed rates. Rehan Javed, a representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stated, “it does not seem electricity will become cheaper with the proposed purchase prices”. He argued that high energy costs would hurt industrial competitiveness.

Tanveer Bari, representing the Karachi Chamber of Commerce and Industry, urged the regulator to exercise caution and specifically requested that the “dollar exchange rate should not be inflated excessively” in the final calculation, as a weaker rupee significantly increases the cost of power generation.

Nepra will continue its review of the CPPA application, with a final decision expected later this year.

Tariff cut

Separately, the electricity consumers are poised to enjoy a relief on account of tariff reduction up to Rs0.65 per unit under fuel cost adjustment for October 2025.

Nepra will hold a public hearing on November 27 following the request filed by CPPA for a significant cut in the monthly fuel charges adjustment. The regulator will review the proposed decrease of Rs0.6508 per unit for consumers of ex-Wapda distribution companies and K-Electric.

According to data submitted by CPPA, hydel and nuclear power collectively accounted for nearly 50% of total generation, with hydel share at 27.36% and nuclear contribution at 22.13%.

The total cost of power delivered to distribution companies was calculated at Rs8.7177 per kilowatt hour (kWh), lower than the reference fuel cost of Rs9.36. The total energy generated during the month was reported at 9,886 gigawatt hours.