Nepra rate review could push power bills higher in 2026

• Benchmark will serve as a key reference for tariffs.
• Regulator questions data, calls CPPA submission incomplete.
• Business groups warn proposal will keep energy unaffordable.
  

ISLAMABAD: Pakistani households and businesses could face higher electricity bills next year after the country’s power regulator on Tuesday opened a review of a proposal to increase the national power purchase price, a step that may drive up energy costs across the board, The News reported.

The Central Power Purchasing Agency (CPPA), in its submission to the National Electric Power Regulatory Authority (Nepra), has proposed setting the national power purchase price for fiscal year 2026 in the range of Rs25.69 to Rs26.69 per unit.

This benchmark will serve as a key reference for the tariffs ultimately charged to consumers nationwide, and business groups caution that the proposed level would entrench costly electricity and further strain economic growth.

Nepra Chairman Wasim Mukhtar presided over the public hearing, where the CPPA based its calculations on projected demand, fuel prices and the US dollar exchange rate.

Member Nepra Rafiq Ahmed Sheikh criticised the submission as incomplete and deficient, questioning the accuracy of the data underpinning the proposal. Nepra said it would consult industry stakeholders before finalising any rate.

Representatives from major business groups warned the proposed range would keep energy unaffordable.

Rehan Javed of the Federation of Pakistan Chambers of Commerce and Industry said the numbers suggest “electricity will not become cheaper” under the plan, adding that high energy costs continue to erode industrial competitiveness.

Tanveer Bari of the Karachi Chamber of Commerce and Industry urged regulators not to “inflate” the exchange-rate assumption, noting that any weakening of the rupee sharply increases generation costs.

Nepra will continue reviewing CPPA’s application in the coming weeks, with a final decision on the 2026 power purchase price expected later this year.