The National Electric Power Regulatory Authority (NEPRA) has approved a significant increase in the average generation tariff for WAPDA's hydroelectric power stations, raising it by Rs4.65 per unit, or 55 percent, to Rs10.76 per unit from the existing Rs6.11 per unit.
Revised Tariff Details
The revised tariff is designed to meet WAPDA's annual revenue requirement of Rs337.227 billion, which includes the prior year's revenue gap and applicable hydel levies. According to the NEPRA decision, the average generation tariff for fiscal year 2026 has been set at Rs10.76 per unit, compared to Rs6.11 per unit in FY23.
The total annual revenue requirement of WAPDA comprises a revenue requirement of Rs154.008 billion, a prior year revenue gap of Rs128.534 billion, and Rs54.684 billion in hydel levies.
Impact on Consumer Tariffs
The Rs4.65 per unit increase in the generation tariff will not proportionally raise the average distribution tariff for end-consumers. However, the increase will translate into a nominal additional cost across the entire electricity basket, according to NEPRA officials.
NEPRA clarified that the average tariff of Rs10.76 per unit is for comparison purposes and is not representative of WAPDA's actual, recurring revenue requirement. Of this amount, Rs4.24 per unit pertains solely to the one-off revenue gap, including hydel levies arrears. This represents the accumulated shortfall between WAPDA's allowed revenue requirement and actual payments received from the Central Power Purchasing Agency (CPPA) during the period the previous tariff remained frozen pending a fresh determination.
Context and Background
The tariff revision comes amid ongoing efforts to address financial sustainability in Pakistan's power sector. WAPDA's hydropower stations are a key component of the country's electricity generation mix, and the increase aims to cover operational costs and past deficits.
