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Power purchase price for 2027 put at Rs 27.31 a unit; NEPRA hearing on 3 November

The base cost of electricity for ex-Wapda consumers would rise next year under the power buyer's forecast, with capacity payments making up more than half. Here is what is in it and how to object.

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The power purchase price for 2027 will be Rs 27.309 per unit in the base case, the Central Power Purchasing Agency (CPPA-G) has told the National Electric Power Regulatory Authority (NEPRA), ProPakistani reported on Tuesday. The forecast feeds the rebasing of consumer tariffs for the ex-Wapda distribution companies (LESCO, IESCO, FESCO, MEPCO, PESCO and the rest) from 1 January 2027, and NEPRA will hear it on 3 November 2026 at NEPRA Tower, Islamabad, with online participation allowed.

The power purchase price is what the distribution companies pay for each unit they buy before their own costs, losses and taxes are added. It is the largest single part of the per-unit rate on a household bill, so it is the number that sets the direction of next year's tariff.

What makes up Rs 27.31 a unit

CPPA-G expects to spend Rs 3.55 trillion buying power next year. Most of it is owed whether plants run or not.

ComponentTotalPer unit
Capacity chargesRs 1.91 trillionRs 14.717
Fuel costRs 1.32 trillionRs 10.141
Variable O&MRs 70.58 billionRs 0.543
Transmission and other chargesRs 248.30 billionRs 1.909
TotalRs 3.55 trillionRs 27.309

Capacity payments, the fixed amounts owed to power plants for being available, are 54% of the price. That is why falling fuel costs do little for bills: even a cheaper fuel mix only moves the Rs 10.14 slice.

The range: Rs 25.88 to Rs 29.26

The base case assumes demand grows 2.6%, sales of 130,081 GWh, a rupee at Rs 279 to the dollar, KIBOR at 11.70% and domestic inflation at 8.2%. CPPA-G also filed other scenarios:

  • Best case: Rs 25.883 a unit.
  • Weaker demand (0.7% growth, 127,937 GWh): Rs 27.568.
  • More RLNG and gas: Rs 26.441.
  • Worst case I and II (rupee at 290): Rs 28.835 and Rs 29.255.

For comparison, CPPA-G's first scenario for 2026, filed a year ago, was Rs 25.95 a unit, Profit reported at the time. The 2027 base case is about Rs 1.36 (5%) above that figure.

What it means for your bill

This is not the final tariff. NEPRA sets the consumer rate after the hearing, and the government then adds its own subsidies, surcharges and taxes. As a rough guide only, Rs 1.36 more per unit on 200 units a month would be about Rs 272 before tax. Check your own usage with our electricity bill calculator or the electricity units calculator.

How to object

Any consumer, business or association can file comments or objections with NEPRA before the hearing and take part online on 3 November. NEPRA publishes hearing notices on its tariff notifications page.

The rupee assumption matters: the dollar is at Rs 276.90 on our USD to PKR page, close to the base case, and KIBOR is at 12.78% on our KIBOR page, above the 11.70% CPPA-G used.

Frequently asked questions

What is the power purchase price for 2027?
CPPA-G's base case is Rs 27.309 per unit, of which Rs 14.717 is capacity charges and Rs 10.141 fuel. NEPRA hears it on 3 November 2026 and the rebased tariff takes effect from 1 January 2027.
Will my electricity bill go up by Rs 27.31 a unit?
No. Rs 27.31 is the cost the distribution companies pay for power before their own costs, losses and taxes. NEPRA and the government set the final consumer tariff.
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Tags:NEPRApower tariff
Topics:LESCONEPRA

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