ISLAMABAD – Pakistan’s National Electric Power Regulatory Authority (Nepra) held a public hearing Thursday to examine a petition by the Water and Power Development Authority (Wapda) requesting an over 80 percent increase in its bulk generation tariff.
Nepra member for Khyber Pakhtunkhwa, Maqsood Anwar Khan, presided over the hearing where Wapda officials stated their base revenue requirement for the current fiscal year (FY26) is Rs179 billion, a rise from the Rs96.93 billion approved by Nepra for FY23.This represents an increase in the base annual tariff from Rs3.10 per unit to Rs5.67 – an increase exceeding 83 percent.
Wapda’s total revenue requirement for FY26 reaches Rs365 billion when including pending claims for regulatory revenue gaps from the past three years, compared to Rs191 billion in FY23. This figure is based on a projected generation of 31,563 gigawatt hours (GWh), up from 31,286GWh in FY23. The proposed increase translates to an estimated 90 percent rise in the bulk hydropower rate, to approximately Rs11.55 per kilowatt hour (kWh) from Rs6.10 per unit.
During the hearing, Nepra member (technical) from Sindh, Rafique Shaikh, challenged Wapda’s performance record on completed hydropower projects, asking, “Name a single project that has met its generation targets.”
Wapda officials argued their performance should be evaluated holistically, considering their contributions to water and food security, flood protection, and overall generation, which is influenced by natural factors. Shaikh countered that project-level scrutiny is warranted given the request for a tariff increase.
The Rs365 billion revenue requirement includes Rs99 billion for debt servicing on ongoing projects and over Rs15 billion for a proposed 100 percent increase in employee salaries over three years,currently at Rs7.41 billion. Security concerns were also cited as a reason for some projects being offline.
Wapda is seeking to recover Rs174 billion in unaddressed financial gaps from FY23 (Rs22.35bn), FY24 (Rs56bn), and FY25 (Rs61bn). The petition also includes Rs29.5 billion in net hydel profit for Khyber Pakhtunkhwa (Rs1.55 per unit), Rs11.7 billion for Punjab (Rs1.47 per unit), and Rs5 billion in water use charges for Azad Kashmir (Rs1.10 per unit).
wapda has requested an 85 percent increase in return on investments and operations & maintenance (O&M) costs, projecting Rs179 billion in FY26 compared to Rs97 billion for FY23. O&M expenses are projected to rise from Rs24 billion in FY23 to Rs39.59 billion in FY26 – a 67 percent increase.
Published in Dawn, September 12th, 2025
