The Water and Power Development Authority (Wapda) has requested a 91% increase in its revenue requirement, aiming to raise it to Rs365 billion for the fiscal year 2026, up from Rs191 billion in FY23. This increase would lead to a rise in the bulk hydropower rate by nearly 90%, reaching Rs11.55 per unit from Rs6.10 per unit.
According to reports, Wapda’s proposed additional revenue of approximately Rs174 billion for FY26 would cover financial gaps from previous years—Rs22.35 billion from FY23, Rs56 billion from FY24, and Rs61 billion from FY25.Â
The request also includes payments of Rs29.5 billion to Khyber Pakhtunkhwa as net hydel profit (NHP) at Rs1.55 per unit, Rs11.7 billion to Punjab at Rs1.47 per unit, and Rs5 billion 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 review Wapda’s demand for an 85% increase in return on investments and operations and maintenance (O&M) costs, rising to Rs179 billion for FY26, up from Rs97 billion in FY23.Â
This includes a proposed 67% increase in O&M expenses, from Rs24 billion in FY23 to Rs39.59 billion in FY26.
Additionally, Nepra is examining Wapda’s requests for return on power station investments, totaling Rs31.58 billion, Rs32.29 billion, and Rs32.01 billion for FY24, FY25, and FY26, respectively. The authority is also reviewing the proposed returns on investment in power projects, which would rise from Rs59.78 billion in FY24 to Rs99.64 billion by FY26.
Wapda has also requested a nearly 166% increase in its revenue requirement, seeking Rs318.5 billion for FY26, compared to Rs119.96 billion in FY23. NHP payments to Khyber Pakhtunkhwa are expected to remain stable at Rs29.53 billion, while similar payments to Punjab and water use charges for Azad Kashmir are projected to be slightly higher for FY26.
Wapda’s total power generation for FY26 is projected to reach 31,563 gigawatt hours (GWh), a slight increase from 31,286 GWh in FY23. A key point under review will be Wapda’s request for a 20MW allocation to Sky47, a special purpose vehicle of Mari Energy, for data centers under a competitive trading bilateral contract market (CTBCM), along with provisions for post-retirement benefits for Wapda employees.
