Electricity Consumers are set to witness increase in their electricity bills due to possible increase in national power purchase price.

The power regulator conducted a public hearing on Tuesday to consider a proposal of setting the national power purchase price at a rate that industry representatives warn will keep energy expensive and stifle economic growth.

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The Central Power Purchasing Agency (CPPA) presented its case before the National Electric Power Regulatory Authority (NEPRA), chaired by Wasim Mukhtar. The CPPA’s proposal, which would set the power purchase price for the 2026 fiscal year, estimates the cost of buying electricity will range between 25.69 rupees and 26.69 rupees per unit.

The price determination is a critical process that directly influences the tariffs eventually paid by households and industries across the country.

During the hearing, the CPPA based its presentation on projections for electricity demand, the U.S. dollar exchange rate, and fuel price estimates. However, the presentation was immediately met with skepticism from the regulator.

NEPRA member Rafiq Ahmed Sheikh declared the CPPA’s submission incomplete and deficient, raising questions about the accuracy of the underlying data. NEPRA has indicated it will consult with industry stakeholders before making a final decision.

Industry leaders voiced strong concerns about the proposed rates. Rehan Javed, a representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stated, it does not seem that electricity will become cheaper with the proposed power purchase prices. He argued that high energy costs would hurt industrial competitiveness.

Tanveer Bari, representing the Karachi Chamber of Commerce and Industry, urged the regulator to exercise caution, specifically requesting that the “dollar exchange rate not be inflated excessively” in the final calculation, as a weaker rupee significantly increases the cost of power generation.

NEPRA will continue its review of the CPPA’s application, with a final decision on the power purchase price expected later this year.

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