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NEPRA reduces WAPDA’s tariff by 27 percent

Islamabad: The Water and Power Development Authority (Wapda) has had its consumer rates slashed by 27% by the National Electric Power Regulatory Authority (Nepra).

9,379 megawatts is the total amount of power produced by Wapda, which represents 25–27% of the total energy mix.

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However, power production in Pakistan is a byproduct of water dams, therefore it varies in accordance with the amount of water released from dams for agricultural use. A recent electricity regulator ruling resulted in a 1.56 rupee per unit reduction in the hydel tariff rate compared to the tariff set by the regulator for the financial year 2018.

Before, the average price for the 2018 fiscal year was Rs 5.67 per kWh, including Rs 3.55 in NHP/hydel taxes. For the fiscal year 2021, the regulator has reduced it to Rs 4.11 per kWh, including Rs 0.96 per kWh in NHP/hydel charges.

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Wapda must use its revenue stream to pay the loan’s interest in order to abide by the ministry’s directives.

The K-P government claimed that Wapda had included NHP at a rate of Rs 1.213 per KWh in their current tariff petition, despite the fact that the 5% indexation permitted by the agreement had not been applied annually prior to FY2016, when it should have started at Rs 1.10 per kWh.

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