Nepra grills Wapda on project gaps, Rs5.68 per unit tariff demand

ISLAMABAD: Pakistan’s power regulator on Thursday questioned the Water and Power Development Authority’s (Wapda) performance on completed hydropower projects as the agency pushed for an 89.4 percent hike in its tariff to Rs11.55 per unit for fiscal year 2025-26, up from existing Rs6.102 set in 2022-23. The utility is seeking Rs364 billion to cover mounting debt repayments, depreciation and staff costs.

The National Electric Power Regulatory Authority (Nepra) held a public hearing on the WAPDA’s petition. NEPRA member Maqsood Anwar Khan chaired the proceeding.

Nepra Technical Member Rafiq Shaikh challenged Wapda officials to “name a single project that has met its generation targets,” pressing for project-by-project accountability as Wapda argued for an overall performance review. Shaikh criticized the tariff push, saying, “We would have praised you had you proposed a tariff cut instead of an increase.”

Wapda has sought Rs364 billion for fiscal year 2025-26, compared with Rs190.9 billion determined for FY2022-23. The proposal includes Rs179.1 billion in core revenue requirements, Rs99 billion for servicing loans on ongoing projects, and over Rs15 billion for a three-year, 100 percent salary hike — double current payroll expenses of Rs7.41 billion. Wapda also seeks Rs46.45 billion in net hydel levies for provinces and territories, with rates for Punjab, Khyber Pakhtunkhwa, and Azad Jammu & Kashmir pending a Council of Common Interests decision on indexation.

Wapda, which runs 21 hydropower stations with a combined 8,400MW capacity, has recently added the Tarbela 5th Extension (1,530MW) and Mohmand Dam (800MW), bringing its licensed generation portfolio, including projects under development, to 19,664MW. Officials cite heavy capital investment, aging plants, and security challenges as justification for the hike, arguing that new reservoirs could have mitigated recent flood losses. Nepra will review the petition before ruling, as rising electricity costs continue to squeeze consumers already facing inflation and repeated tariff adjustments.