WAPDA Seeks 90% Hike In Tariff Of Electricity Produced Through Hydropower

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WAPDA Seeks 90% Hike In Tariff Of Electricity Produced Through Hydropower

The Water and Power Development Authority (WAPDA) has asked for a significant increase in electricity prices for the fiscal year 2026. The authority has submitted a request to raise its revenue requirement to Rs. 365 billion, up from Rs. 191 billion in FY23.

If approved, this would push the bulk hydropower tariff to Rs. 11.55 per unit, compared to the current Rs. 6.10 per unit. Officials say the rise covers both new costs and financial gaps from earlier years. These include Rs. 22.35 billion for FY23, Rs. 56 billion for FY24, and Rs. 61 billion for FY25.

WAPDA’s request also includes payments to provinces and Azad Jammu and Kashmir. Net hydel profit payments are projected at Rs. 29.5 billion for Khyber Pakhtunkhwa, Rs. 11.7 billion for Punjab, and Rs. 5 billion in water use charges for AJK.

The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on September 11 to review the proposal. NEPRA will evaluate WAPDA’s demand for higher operations and maintenance expenses, which are expected to rise by 85% in FY26. Depreciation costs and returns on investment will also be examined.

According to WAPDA, power generation from all assets is estimated at 31,563 gigawatt hours in FY26, compared to 31,286 GWh in FY23. The authority has also planned a 20MW allocation for Sky47, a special-purpose vehicle of Mari Energy, under the competitive trading bilateral contract market system.

NEPRA has raised questions over the justification for such a large increase. However, WAPDA argues that the hike is necessary to meet rising costs and ensure reliable electricity production. The final decision will depend on the outcome of the upcoming hearing.

In other related news also read Wapda’s Receivables Cross Rs. 232 Billion.

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