Pakistan Starts January 2027 Electricity Tariff Review With Six Proposals

Pakistan has begun reviewing power purchase costs for electricity tariffs scheduled from January 1, 2027. CPPA-G has submitted six forecasts to NEPRA, which will hear the case on November 3 before deciding the costs used to set consumer rates.

Electricity purchase costs help determine the basic rates paid by homes and businesses. The current review will establish these costs for the coming year.

The Central Power Purchasing Agency-Guarantee Limited (CPPA-G), which purchases electricity for distribution companies, has filed its forecast with the National Electric Power Regulatory Authority (NEPRA), Pakistan’s electricity regulator. The review covers distribution companies formerly part of the Water and Power Development Authority.

Six Forecasts Put Different Prices Before NEPRA

CPPA-G’s base forecast puts power purchase costs at Rs. 27.309 per unit, with annual spending of about Rs. 3.55 trillion.

Lower fuel prices bring the estimated purchase price per unit to Rs. 25.883. Using a different mix of imported and local gas leads to Rs. 26.441. With slower demand growth, the figure reaches Rs. 27.568. In the two adverse cases, the price is estimated at Rs. 28.835 and Rs. 29.255.

These figures show the cost of buying electricity for distribution companies. NEPRA has yet to approve the rates consumers will pay.

The lowest estimate puts electricity purchases for January to December 2027 at about Rs. 3.387 trillion.

CPPA-G expects electricity use to grow by 2.6% and uses a dollar rate of Rs. 279. The two adverse cases assume Rs. 290 per dollar rate, along with higher fuel prices.

Capacity Payments Exceed Fuel Costs

CPPA-G puts capacity payments at about Rs. 1.914 trillion in its main forecast. These payments cover agreed costs of keeping power plants ready to supply electricity. Under less favorable conditions, the estimate reaches roughly Rs. 1.962 trillion.

The agency expects fuel expenses to reach about Rs. 1.32 trillion. Another Rs. 70.58 billion would cover operating and maintenance costs linked to generation. Power transmission and Ministry of Finance charges add Rs. 248.30 billion.

How the Proposal Compares With 2026

NEPRA approved Rs. 25.32 per unit as the average power purchase price. The approved forecast put total purchases at about Rs3.186 trillion, including roughly Rs. 1.923 trillion in capacity payments.

The proposed 2027 base figure is about Rs. 1.99 per unit higher. A higher purchase price alone does not confirm how much consumers will pay.

November Hearing Comes Before Final Rates

NEPRA will hear the request on November 3, 2026, at 2 pm at NEPRA Tower in Islamabad. NEPRA has asked interested parties to send comments or objections. The hearing will also be conducted on Zoom for those joining online.

The regulator will study the proposals and listen to participants before deciding the power purchase costs for 2027. Consumers will pay the approved rates, plus taxes, duties and, other applicable charges. Any subsidy will also affect the amount due.