Pakistan has cut the national average power purchase price (PPP) to Rs 25.98 per unit for the upcoming financial year 2025-26, marking a significant reduction of 3.77 percent or Rs 1.02 per unit compared to the current Rs 27 per unit, which is likely to lead to a reduction in pressure on electricity prices.
According to Nepra, the total national PPP for the next financial year will be Rs 3.342 trillion. For X-WAPDA Distribution Companies (XWDiscos), this cost has been fixed at Rs 3.066 trillion or Rs 26.34 per unit, which does not include K-Electric.
Of this, Rs 1.125 trillion is allocated for fuel and variable operation and maintenance, while Rs 1.941 trillion (63 percent) is allocated for capacity charges, which include wheeling charges of NTDC, PMLTC and CPPA-G dues.
Capacity charges average Rs 6.484 per unit per month while energy charges are Rs 9.67 per unit. CPPA-G has submitted seven scenarios to NEPRA, including different demand, exchange rate and water availability scenarios.
The total PPP in the financial year 2023-24 was Rs 22.95 per unit, reflecting the ongoing rising cost.