Pakistan’s Water and Power Development Authority (WAPDA) has asked regulators to nearly double its hydropower tariff, seeking approval for a staggering Rs364.8 billion revenue requirement for fiscal year 2025-26 — almost double the Rs190.9 billion allowed for FY2022-23 — as rising project costs and asset transfers strain its balance sheet.
The state-run WAPDA, which operates 21 hydel power stations with a combined capacity of 8,400MW, has added Tarbela 5th Extension (1,530MW) and Mohmand Dam (800MW) to its generation license. Its aggregate net generation license stands at 19,664 MW, including under development projects of 11,264 MW.
WAPDA said mounting capital investments, aging infrastructure, and rising depreciation costs have made urgent tariff adjustments unavoidable.
NEPRA has scheduled a high-stakes public hearing for Sept. 11 to review the petition, which highlights a sharp increase in WAPDA’s core power wing revenue requirement — Rs179.1 billion for FY2025-26, up from Rs96.9 billion in FY2022-23 — and Rs46.45 billion in net hydel profits owed to provinces and territories.
The regulator has flagged 11 contentious points, including soaring operation and maintenance charges, a Rs60.9 billion revenue gap claim for FY2025, and Rs78.3 billion sought for earlier fiscal years. NEPRA is also scrutinizing compliance lapses from its 2022-23 ruling, such as missing proof of a dedicated pension fund, delayed energy purchase agreements, and outdated documentation for major rehabilitation projects like Golen Gol, Mangla, and Warsak.
Rates for net hydel profit and water usage charges — Rs1.548/kWh for Khyber Pakhtunkhwa, Rs1.474/kWh for Punjab, and Rs1.10/kWh for Azad Jammu & Kashmir — remain frozen, pending a Council of Common Interests decision on indexation.
