WAPDA Seeks 90% Hike in Hydropower Tariff

The Water and Power Development Authority (WAPDA) has formally submitted a request for a significant increase in electricity tariffs, seeking a 90% hike in hydropower rates. If approved, the bulk tariff will rise to Rs. 11.55 per unit from the current Rs. 6.10 per unit.

According to the proposal, WAPDA aims to raise its revenue requirement to Rs. 365 billion for FY26, up from Rs. 191 billion in FY23. The additional demand of Rs. 174 billion includes financial gaps from past years as well as payments to provinces. These payments include Rs. 29.5 billion in net hydel profit to Khyber Pakhtunkhwa, Rs. 11.7 billion to Punjab, and Rs. 5 billion in water use charges to Azad Jammu and Kashmir (AJK).

The National Electric Power Regulatory Authority (NEPRA) has scheduled a public hearing on September 11 to assess WAPDA’s justification, including its demand for higher returns on investment and increased operations & maintenance (O&M) costs, which are projected to rise by 67% over the next three years.

WAPDA’s total power generation for FY26 is projected at 31,563 GWh, a slight increase from 31,286 GWh in FY23. The proposal also includes a 20MW wheeling arrangement for Sky47, a special project by Mari Energy for data centers.

This potential tariff increase has sparked debate, with NEPRA questioning the heavy cost burden on consumers and reviewing WAPDA’s return on capital claims.