CPPA-G projects a power purchase price of Rs27.31 per unit under its base-case estimate as NEPRA prepares to review the 2027 tariff. Pakistan’s power purchase

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Picture of By Waqas Malik

By Waqas Malik

Posted on: October 19, 2026

CPPA-G projects a power purchase price of Rs27.31 per unit under its base-case estimate as NEPRA prepares to review the 2027 tariff.

Pakistan’s power purchase cost could reach Rs3.55 trillion in 2027, according to projections submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G). The estimate is part of the proposed electricity tariff calculations for distribution companies from January 1, 2027.

Under the base-case scenario, the projected power purchase price is Rs27.309 per kilowatt-hour, commonly called a unit. However, estimates vary depending on factors such as fuel costs, electricity demand and the exchange rate.

The projections show a possible range from Rs25.883 per unit in the ideal scenario to Rs29.255 per unit in the second worst-case scenario. These figures are forecasts for the power purchase price, not a confirmed final electricity bill rate for consumers.

Capacity Charges Make Up the Largest Share

Capacity charges account for the biggest portion of the base-case estimate, reaching around Rs1.91 trillion. Fuel costs are projected at approximately Rs1.32 trillion, while variable operation and maintenance costs are estimated at Rs70.58 billion.

Transmission costs and Ministry of Finance charges together account for another Rs248.30 billion. These figures show the different costs included in the projected price of electricity purchased for distribution companies.

The base case assumes electricity demand growth of 2.6%, an exchange rate of Rs279 against the US dollar, and electricity sales of 130,081 gigawatt-hours to distribution companies.

NEPRA to Hold Public Hearing on November 3

The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on the projected power purchase price for November 3, 2026, at 2:00 pm. The hearing will take place at NEPRA Tower and will also be available online through Zoom.

NEPRA has invited interested and affected parties to submit their comments or objections. The regulator will review the proposal as part of the process for determining consumer-end electricity tariffs for 2027.

The final tariff will depend on the regulatory process and the decisions made by NEPRA. The projected power purchase price should therefore not be treated as a confirmed increase in household electricity bills.

RESPONSIVE LEADERBOARD AD AREA

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