The power division has sought an increase of about Rs2 to Rs4 per unit in the electricity price paid for power purchases in 2027, warning that the cost of buying electricity could rise from the current Rs25.32 per unit to as much as Rs29.26 under its worst-case projection.
The projections were presented at a public hearing of the National Electric Power Regulatory Authority (Nepra) by a team that included Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar and Power Planning and Monitoring Company CFO Naveed Qaiser. Nepra reserved its decision and will announce its determination after reviewing the record and submissions.
Electricity Price Scenarios for 2027
The power division presented six scenarios for next year’s power purchase price, which is the cost of generating and buying electricity before taxes and other charges are added to consumer bills.
| Scenario | Price per unit (Rs) | Change from Rs25.32 |
|---|---|---|
| Current price | 25.32 | – |
| Ideal scenario (called unlikely by officials) | 25.883 | +0.563 |
| More LNG and gas available | – | +1.12 |
| Base case | 27.31 | +1.99 |
| Change in demand | – | +2.25 |
| Worst case 1 | 28.84 | +3.52 |
| Worst case 2 | 29.26 | +3.94 |
The total power purchase cost for 2027 is projected at between Rs3.4 trillion and Rs3.8 trillion. None of the scenarios assume that the US-Iran war continues into 2027, which means a longer conflict and higher fuel costs could push the numbers further.
How a Higher Electricity Price Affects You
The power purchase price is the biggest part of the electricity tariff. If Nepra approves a higher reference price, it is normally passed on to consumers through the base tariff or through monthly and quarterly adjustments.
- A household using 200 units a month would see the energy cost rise by roughly Rs400 under the base case (Rs1.99 per unit) and by about Rs790 under the worst case (Rs3.94 per unit), before taxes.
- A household using 300 units could pay about Rs600 to Rs1,180 more a month before taxes.
- Industry and businesses would face higher production costs, which can feed into prices of goods.
Taxes and other charges are added on top of these amounts, so the final increase on the bill would be higher. The actual impact will depend on Nepra’s final decision and the government’s subsidy policy.
Industry Objects at Nepra Hearing
Industrial consumers at the hearing criticised the government for creating new entities and hiring staff on high salaries, arguing that such costs end up in the electricity price and make tariffs more expensive for consumers.
What Happens Next
Nepra will examine the projections and the objections raised before issuing its determination on the reference power purchase price for 2027. The government will then decide how the price is reflected in the national tariff. Fuel prices, gas and LNG availability, the rupee’s exchange rate and electricity demand will all decide which scenario turns out closest to reality.
For official updates, visit the National Electric Power Regulatory Authority (Nepra) website.
Read More: Govt to End 200-Unit Electricity Penalty, Plans Targeted Subsidy
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