ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) has raised concerns over Wapda’s request for a sharp increase in hydropower tariffs. Wapda has sought approval to raise the rate from Rs6.10 per unit to Rs11.55 per unit, an increase of Rs5.45.
The hearing on Wapda’s petition was chaired by Nepra Member for Khyber Pakhtunkhwa, Maqsood Anwar Khan. Technical Member Rafique Shaikh strongly questioned Wapda’s efficiency, pointing out that operations and maintenance (O&M) costs had jumped by nearly 85 percent. He remarked that true efficiency requires reducing costs, not raising them.
Wapda defended its request by citing rising expenses, debt servicing, and employee salaries. Officials explained that Rs364 billion is needed for the next fiscal year, including Rs99 billion for loan repayments and Rs15 billion for higher salaries. They added that security challenges had also delayed some hydropower projects.
During the hearing, Nepra members asked Wapda to identify a single project that had consistently met its generation targets. Wapda argued that its overall contribution to energy and water security should be considered rather than individual project performance.
According to Wapda’s petition, total revenue requirements for FY2025-26 have been calculated at Rs364.87 billion, including hydel levies. This is 91 percent higher than the revenue requirement determined by Nepra for FY2022-23. The authority was also informed that without arrears of net hydel profit, revenue needs stand at Rs318.5 billion — a 165 percent increase compared to earlier determinations.
Nepra officials expressed dissatisfaction with Wapda’s approach, stressing that tariff reductions would have been more welcome than steep increases. They also highlighted the risk of burdening consumers further amid rising energy costs.
The regulator will now review Wapda’s petition before making its final decision on whether to approve the proposed tariff hike.
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