CPPA proposes six electricity purchase price scenarios for 2027, with estimated costs ranging from Rs25.88 to Rs29.25 per unit as NEPRA prepares to review the application.
ISLAMABAD: Pakistan has begun the process of determining its new electricity base tariff, scheduled to take effect Jan. 1, 2027, after the Central Power Purchasing Agency (CPPA) submitted a tariff application to the National Electric Power Regulatory Authority (NEPRA).
The CPPA has proposed six possible scenarios for electricity purchase prices for January through December 2027. NEPRA will review the application and hold a hearing on Nov. 3 before deciding on the proposed power purchase tariff.
Under the application, the estimated electricity purchase cost for 2027 could reach a minimum of Rs3,386.86 billion, with the average purchase price projected at Rs25.88 per unit. Under the highest-cost scenario, the estimated purchase price could rise to Rs29.25 per unit.
The application also outlines projected capacity payments, which compensate power producers for making generation capacity available. These payments are estimated to range from Rs1,914.44 billion under the lowest-cost scenario to Rs1,962 billion under the highest-cost scenario.
The proposed figures are estimates submitted for regulatory review and do not represent approved consumer electricity rates. The final decision will follow NEPRA’s regulatory proceedings and will contribute to the process of setting the new base tariff.
2027 projections compared with 2026
For comparison, the estimated cost of electricity purchases for the full year 2026 stands at Rs3,185 billion, while the average purchase price has been projected at Rs25.32 per unit.
Capacity payments for January through December 2026 are estimated at Rs1,923.31 billion, equivalent to approximately Rs14.86 per unit over the year.
The figures indicate that the projected electricity purchase cost for 2027 is higher than the estimate for 2026. However, the eventual impact on consumers will depend on the approved tariff and the broader process used to determine electricity base rates.
Capacity payments are a component of the power sector’s costs and cover payments for available generation capacity, rather than electricity purchases alone. The CPPA’s proposed scenarios reflect different possible cost outcomes for the coming year.
NEPRA’s Nov. 3 hearing will provide an opportunity for the regulator to examine the application before reaching a decision. Until the review is completed, the proposed purchase prices and capacity payment estimates remain subject to regulatory scrutiny.
Electricity consumers will have to wait for NEPRA’s decision to understand how the approved power purchase tariff may affect the determination of the new base tariff from Jan. 1, 2027.
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