ISLAMABAD: National Electric Power Regulatory Authority has approved a tariff of 12.40 cents per kilowatt hour for the continued import of 104 megawatts of electricity from Iran and an additional 100 megawatts, while issuing a sharp warning over repeated procedural violations by Pakistani power authorities.

The approval follows an application by Central Power Purchasing Agency-Guarantee Limited after the Economic Coordination Committee authorized the extension and expansion of the cross border electricity agreement with Iran in August 2023. The deal ensures a stable supply of electricity to underserved areas of southwestern Pakistan.

The long standing agreement with Iran’s state owned power company TAVANIR was originally signed in 2002 and has been revised several times. Amendments to the agreement cover tariff adjustments, payment mechanisms and technical arrangements, including the new Polan to Gabd transmission line that will carry the additional 100 megawatts.

Under the latest formula, the electricity price includes a fixed charge and a variable component linked to average monthly Organization of the Petroleum Exporting Countries oil prices. This mechanism keeps the delivered tariff within a ceiling of 12.40 cents per kilowatt hour.

Despite granting approval, NEPRA criticized CPPA G for submitting agreements after they had already taken effect, a direct violation of the Electric Power Procurement Regulations 2022. The regulator noted that some amendments were filed nearly two years late and warned that future lapses could trigger strict regulatory action.

NEPRA acknowledged that imported electricity remains indispensable for Makran, where no immediate alternative source is available. The decision secures power for the coastal region but also underscores the urgent need for stronger planning, regulatory compliance and long term energy strategy.