ISLAMABAD: In a potential relief for electricity consumers, the National Electric Power Regulatory Authority (Nepra) is considering a proposal to reduce base power tariffs for the fiscal year 2025-26. The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has projected a decline in the power purchase price (PPP) to Rs24.75 per unit, compared to the current Rs27 per unit.
This proposed reduction could benefit domestic, industrial, and commercial consumers. Last June, Nepra had increased the PPP from Rs22.95 in FY2023-24 to Rs27/unit for FY2024-25.
Nepra has accepted CPPA-G’s petition and scheduled a public hearing for May 15 to evaluate the proposed PPP under seven different scenarios. The outcome will help determine a fair consumer-end tariff for electricity distribution companies (Discos) for the upcoming fiscal year.
While a lower average unit cost is expected, capacity charges—fixed payments to power producers—continue to weigh heavily on the PPP. CPPA-G estimates these charges will range from Rs2.06 trillion to Rs2.16 trillion, translating to Rs16.04 to Rs16.45/unit and comprising over 60% of the total PPP in most cases. Energy charges are projected to range from Rs8.16 to Rs9.19/unit, down from Rs9.69 in the current fiscal.
The CPPA-G projections are based on key assumptions, including electricity demand growth of 3–5%, an exchange rate between Rs280–Rs300 per USD, favorable hydrology conditions, and prevailing inflation trends.
In FY2024-25, the average base tariff was hiked by up to Rs5.7/unit, raising the overall average from Rs29.78 to Rs35.5/unit.
Story by Israr Khan
