Pakistan has begun the process of determining its new electricity base tariff for 2027 after the Central Power Purchasing Agency (CPPA) submitted a tariff application to the National Electric Power Regulatory Authority (NEPRA). The proposed tariff is scheduled to take effect from January 1, 2027, subject to regulatory review and approval.
According to the application, the CPPA has presented six possible scenarios for electricity purchase prices covering January to December 2027. The agency has proposed a minimum annual electricity purchase cost of Rs3,386.86 billion, with an estimated average purchase price of Rs25.88 per unit. Under the highest-cost scenario outlined in the application, the estimated purchase price could reach Rs29.25 per unit.
The application also includes projections for capacity payments, which compensate power producers for maintaining electricity generation capacity. These payments are estimated to range from Rs1,914.44 billion under the lowest-cost scenario to Rs1,962 billion under the highest-cost scenario. The figures will be examined as part of the regulatory process before any final decision is announced.
NEPRA has scheduled a hearing on the CPPA application for November 3. Following the hearing and regulatory proceedings, the authority will determine the approved electricity purchase tariff for the period from January to December 2027. The proposed estimates will contribute to the process of setting the new base tariff but do not represent final consumer electricity rates.
For comparison, the estimated cost of electricity purchases for the full year 2026 stands at Rs3,185 billion, with an average purchase price of Rs25.32 per unit. Capacity payments for 2026 are projected at Rs1,923.31 billion, equivalent to an estimated Rs14.86 per unit over the year.
The proposed figures provide an initial indication of the expected cost of purchasing electricity in 2027. However, consumers will need to wait for NEPRA’s decision to understand how the approved tariff may affect electricity pricing from January next year. The final outcome will depend on the regulatory review and the approved power purchase cost.
