ISLAMABAD: Pakistan's Water and Power Development Authority (Wapda) has petitioned the National Electric Power Regulatory Authority (Nepra) to nearly double its hydropower tariff. It is seeking approval for a substantial Rs364.8 billion revenue requirement for the fiscal year 2025-26. This compares with Rs190.9 billion determined for FY2022-23.
Wapda currently operates 21 hydel power stations with a combined capacity of 8,400MW. It has recently added Tarbela 5th Extension (1,530MW) and Mohmand Dam (800MW) to its generation licence. With these additions, Wapda’s total net generation licence stands at 19,664MW, including 11,264MW from projects still under development.
According to Wapda, rising capital investments, the transfer of projects to fixed assets and ageing plants have increased both depreciation and financing costs. These factors have created an urgent need for tariff adjustments. The tariff modification petition has been filed in line with Nepra’s tariff determination issued on September 6, 2023, revised on June 6, 2024, and notified on July 26, 2024. That determination set the applicable tariff for Wapda’s regulated hydroelectric business for FY2022-23. The proposed increase would cover Rs179.1 billion in core revenue requirements for Wapda’s power wing. This is a significant rise from Rs96.9 billion in FY2022-23. It also includes Rs46.45 billion in net hydel levies to provinces and territories.
Nepra has identified 11 contentious issues within the petition. These include significantly higher operation and maintenance (O&M) charges, rising depreciation costs, and a Rs60.9 billion revenue gap claim for FY2025. Wapda is also seeking Rs56 billion for FY2024 and Rs22.3 billion for FY2023 to cover previous shortfalls.
Additionally, Nepra is reviewing a plan to allocate 20MW to Mari Energy under a wheeling arrangement.
The regulator has also flagged several compliance gaps from its 2022–23 tariff ruling, including the absence of proof of a dedicated pension fund account, revised energy purchase agreements, and updated PC-I documents for major rehabilitation projects such as Golen Gol, Mangla, and Warsak.
Net hydel profit (NHP) rates for Khyber Pakhtunkhwa and Punjab, along with water usage charges (WUC) for Azad Jammu & Kashmir, remain unchanged at Rs1.548/kWh, Rs1.474/kWh, and Rs1.10/kWh, respectively. Final decisions on indexation are still pending a ruling by the Council of Common Interests.
