CPPA-G Proposes a Rs27.309 Base-Case Power Purchase Price for 2027, 7.85% Above This Year's Reference
The Central Power Purchasing Agency has filed its power purchase price forecast for calendar year 2027 with NEPRA. The base case is Rs27.309 per kWh on 130,081 GWh of sales to the ex-WAPDA distribution companies and K-Electric, for a total cost of Rs3,552.4 billion. NEPRA has scheduled a hearing for 3 November, and the new references will feed the consumer tariff rebasing that takes effect on 1 January 2027.
NEPRA's approved reference for 2026 was Rs25.3213 per kWh. The increase of Rs1.988 (7.85%) comes from fuel, which rises from Rs7.738 to Rs10.141 per unit. Capacity charges per unit fall from Rs15.286 to Rs14.717 because a slightly smaller rupee total is spread over 3.4% more units. By TEI's calculation, the fuel increase equals 121% of the net rise in the price.
The base case assumes Brent at US$92 a barrel, RLNG at US$19.96 per MMBTU and Rs279 to the dollar. The six scenarios in the filing run from Rs25.883 in an ideal case with Brent at US$70 to Rs29.255 in Worst Case II, with Brent at US$118 and the rupee at 290. CPPA-G also suggests NEPRA consider updating the references periodically because fuel prices have been so volatile.
Source: TEI research: Fuel Accounts for More Than All of the Rise in Pakistan's Proposed 2027 Power Purchase Price; CPPA-G, Power Purchase Price Forecast CY 2027, submitted to NEPRA 12 October 2026 (PDF); NEPRA, decision on CPPA-G's power purchase price forecast for CY 2026 (TRF-100), 7 January 2026 (PDF); Business Recorder, CPPA-G sees average PPP at Rs27.309/kWh for CY27, 20 October 2026