Pakistan Electricity Purchase Cost May Rise to Rs27.31 per Unit From January 2027

Pakistan’s electricity purchase cost could rise to Rs27.309 per kilowatt-hour from January 1, 2027, under estimates submitted by the Central Power Purchasing Agency (CPPA) as part of the upcoming tariff review process.

The agency has projected the total cost of electricity purchases at Rs3.55 trillion under its baseline estimates for the next tariff period. The figures will form part of the process used to determine the revised reference cost for electricity supplied to consumers served by former WAPDA distribution companies.

The proposed review is expected to take effect from January 1, 2027. During the process, the revised reference cost will be assessed and used as a basis for determining electricity tariffs for consumers.

The projected figure of Rs27.309 per unit represents the estimated electricity purchase cost under the agency’s calculations. It should not automatically be interpreted as the final retail tariff consumers will pay, as the applicable rates are determined through the formal tariff-setting process.

Electricity prices in Pakistan are influenced by several factors, including power generation costs, fuel prices, capacity payments, transmission and distribution expenses, and adjustments approved by the relevant authorities.

The revised reference cost is therefore an important component of the tariff review, but the final impact on household and business bills will depend on the approved rates and any applicable adjustments.

The proposed review comes as electricity costs remain a major concern for households and businesses across the country. Any increase in the underlying cost of power procurement could place additional pressure on consumers, depending on how it is reflected in the final tariff structure.

The Rs3.55 trillion projection and the estimated per-unit purchase cost will be considered within the regulatory process before the new tariff period begins. The final consumer rates will depend on the outcome of that review and the decisions of the relevant authorities.