WAPDA Wants to Raise Electricity Prices

The Water and Power Development Authority (Wapda) has requested a massive 91% increase in its revenue requirement for the ongoing fiscal year (FY26), raising the figure to Rs365 billion from Rs191 billion in FY23.

According to Dawn, this proposed adjustment would push the bulk hydropower tariff up by around 90%, from Rs6.10 per unit to Rs11.55 per unit (kilowatt-hour).

Wapda’s additional revenue demand of Rs174 billion for FY26 includes financial gaps from previous years — Rs22.35 billion for FY23, Rs56 billion for FY24, and Rs61 billion for FY25. The revenue requirement also covers Rs29.5 billion in net hydel profit (NHP) for Khyber Pakhtunkhwa at Rs1.55 per unit, Rs11.7 billion for Punjab at Rs1.47 per unit, and Rs5 billion in water usage charges for Azad Jammu and Kashmir (AJK) at Rs1.10 per unit.

The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on September 11 to evaluate Wapda’s justification for an 85% increase in return on investments and operations and maintenance (O\&M) costs, which are projected to jump from Rs97 billion in FY23 to Rs179 billion in FY26.

Wapda’s O\&M expenses are expected to rise from Rs24 billion in FY23 to Rs30.66 billion in FY24, Rs36.37 billion in FY25, and Rs39.59 billion in FY26 — a cumulative increase of 67%. The authority has also included depreciation charges of Rs7.92 billion for FY24, Rs8.61 billion for FY25, and Rs8.7 billion for FY26 in its claims.

One of the major issues under review during the upcoming public hearing will be Wapda’s proposal to allocate 20MW of power for a wheeling arrangement to Sky47 — a special purpose vehicle (SPV) of Mari Energy — to supply data centres for strategic and commercial use under the Competitive Trading Bilateral Contract Market (CTBCM).

Nepra will also examine Wapda’s provisions for post-retirement benefits for its employees as part of the review.