ISLAMABAD: The Water and Power Development Authority (Wapda) has sought about a 91 per cent increase in its revenue requirement to Rs365 billion for the current fiscal year (FY26), up from Rs191bn in FY23.
This would translate into an estimated 90pc increase in the bulk hydropower rate to about Rs11.55 per unit (kilowatt hour) from Rs6.10 per unit, an official told Dawn.
The additional revenue of about Rs174bn demanded by Wapda for FY26 also covers an unaddressed financial gap of Rs22.35bn for FY23, Rs56bn for FY24 and Rs61bn for FY25. The Rs365bn revenue requirement further includes Rs29.5bn net hydel profit (NHP) to Khyber Pakhtunkhwa at Rs1.55 per unit, Rs11.7bn to Punjab at Rs1.47 per unit, and Rs5bn in water use charges to Azad Kashmir at Rs1.10 per unit.
The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on September 11 to assess whether Wapda’s claim is justified for an 85pc increase in return on investments and operations and maintenance (O&M) to Rs179bn in FY26, compared to Rs97bn determined in FY23.
This includes Wapda’s demand for raising O&M expenses from Rs24bn in FY23 to Rs30.665bn in FY24, Rs36.374bn in FY25 and Rs39.59bn in FY26 — a 67pc increase. The claims also include a depreciation charge of Rs7.924bn in FY24, Rs8.611bn in FY25 and Rs8.7bn in FY26. Nepra has also raised questions about Wapda’s demand for a weighted average cost of capital (WACC)-based return on power stations of Rs31.582bn, Rs32.294bn and Rs32.011bn for FY24, FY25 and FY26, respectively.
Similarly, the request for WACC-based return on investment in power projects amounting to Rs59.783bn, Rs78.408bn and Rs99.642bn for the same three years is under scrutiny.
Overall, Wapda has sought its own revenue requirement at Rs318.5bn for FY26 — an almost 166pc increase compared to Rs119.962bn in Fy23. In addition, Wapda has kept its estimates relatively stable for levies and dues payable to the provinces and AJK on account of NHP and water use charges.
Annual NHP payments to KP are estimated at Rs29.53bn for FY26 compared to Rs30bn in FY23. Similar payments to Punjab are booked at Rs11.969bn for FY26 against Rs11.867bn in FY23, while water use charges for AJK are projected at Rs5.085bn in FY26 against Rs4.222bn in FY23. Wapda’s power generation from all assets is projected at 31,563 gigawatt hours (GWh) in FY26, slightly up from 31,286GWh in Fy23.
A key issue for scrutiny will be Wapda’s request to carve out 20MW for a wheeling arrangement to Sky47 — a special purpose vehicle (SPV) of Mari Energy — for data centres of strategic and commercial use, in line with the competitive trading bilateral contract market (CTBCM), along with provisions for post-retirement benefits of Wapda employees.
Published in Dawn, September 4th, 2025
