Power purchase price may hit Rs27/unit in CY27

October 19, 2026 (MLN): The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has projected the power purchase price (PPP) for calendar year 2027 at Rs3.55tr, or Rs27.309/kWh, in its base case.

The figure is part of the rebasing of consumer-end tariff for ex-WAPDA distribution companies (XWDISCOs) with effect from January 1, 2027.

Across six scenarios, the projected price ranges from Rs25.883/kWh in the ideal case to Rs29.255/kWh in the second worst case.

The National Electric Power Regulatory Authority (NEPRA) will hold a hearing on the projections on November 3, 2026 at 2:00 pm at NEPRA Tower and online through Zoom.

Interested and affected parties have been invited to submit written or verbal comments or objections. The issues framed for the hearing and a copy of the PPP forecast can be obtained from the NEPRA office or website, according to a notice by NEPRA.

In the base case, which assumes 2.60% demand growth, an exchange rate of Rs279/$ and 130,081 GWh sold to distribution companies, capacity charges make up the largest part of the price at Rs1.91tr (Rs14.717/kWh).

Fuel cost stands at Rs1.32tr (Rs10.141/kWh), variable O&M at Rs70.58bn (Rs0.543/kWh), and transmission and Ministry of Finance charges at Rs248.30bn (Rs1.909/kWh).

The worst cases assume the rupee at Rs290/$, against Rs279/$ in the other scenarios, and the demand sensitivity case assumes growth of only 0.70%, cutting sales to 127,937 GWh. All scenarios use KIBOR at 11.70%, SOFR at 3.98%, US inflation at 2.10%, local inflation at 8.20% and NGC losses at 2.50%.

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