The Water and Power Development Authority (Wapda) has asked for a massive 91 percent increase in its revenue requirement, seeking approval of Rs. 365 billion for the ongoing fiscal year (FY26), compared to Rs. 191bn in FY23.
This demand could push bulk hydropower rates up by around 90 percent, from Rs. 6.10 per unit to nearly Rs. 11.55 per unit, officials confirmed.
According to Wapda, the additional Rs. 174bn requested for FY26 also covers old financial gaps, including Rs. 22.35bn for FY23, Rs. 56bn for FY24, and Rs. 61bn for FY25. The proposed revenue requirement further includes payments to provinces in the form of net hydel profit (NHP) and water charges, Rs. 29.5bn for Khyber Pakhtunkhwa, Rs. 11.7bn for Punjab, and Rs. 5bn for Azad Jammu & Kashmir.
The National Electric Power Regulatory Authority (Nepra) has fixed September 11 for a public hearing to examine Wapda’s case. The regulator will review whether the authority’s claims for an 85 percent jump in returns and operations & maintenance (O&M) — increasing from Rs. 97bn in FY23 to Rs. 179bn in FY26 — are justified.
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Wapda has proposed raising its O&M costs from Rs. 24bn in FY23 to almost Rs. 40bn in FY26, alongside higher depreciation charges. Nepra has also expressed concerns over Wapda’s demand for returns on its power plants and new projects based on the weighted average cost of capital (WACC).
In total, Wapda requirement for FY26 has been worked out at Rs. 318.5bn, which is more than double the Rs. 119.9bn approved in FY23. Payments to provinces and AJK, however, remain relatively stable, with KP expected to receive Rs. 29.5bn, Punjab nearly Rs. 12bn, and AJK around Rs. 5bn during FY26.
The authority’s total electricity generation is estimated at 31,563 gigawatt hours (GWh) for FY26, only slightly higher than 31,286GWh in FY23. Wapda has also sought provisions for post-retirement benefits of its employees.
