ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a power tariff increase of 1.1 paisa per kilowatt-hour (kWh) to allow recovery of the Private Power and Infrastructure Board’s (PPIB) fee from the electricity consumers.
This decision, issued Monday, enables the PPIB fee to be treated as a pass-through cost, akin to other recoverable charges allowed by NEPRA and the Central Power Purchasing Agency-Guarantee (CPPA-G).
This adjustment permits the annual PPIB fee to be treated as a pass-through cost, similar to other recoverable charges by the Central Power Purchasing Agency-Guarantee (CPPA-G) and NEPRA itself.
NEPRA, in its order said, “The Authority has decided to allow the PP1B fee prescribed under the PP1B Act as pass through for all IPPs.
The above Order of the Authority is hereby intimated to the Federal Government in terms of Section 31(7) of the Regulations of Generation, Transmission and Distribution of Electric Power Act, 1997, said NEPRA order issued on 7th July 2025.
Earlier, NEPRA conducted a suo motu hearing on February 13, 2025, and invited input from stakeholders. The Authority recognized PPIB’s institutional needs, including infrastructure development, but cautioned that “only demonstrably necessary, efficient, and proportionate expenses” should be passed on to consumers.
PPIB earlier informed NEPRA that while some IPPs have paid the annual fee without objection, others have raised concerns before forums including the Minister for Energy and the Secretary Power Division. These IPPs argued that the original $300/MW fee was excessive and requested a downward revision.
In response, the PPIB Board reduced the annual fee to $250/MW through the “PPIB Board (Fees and Charges) (Amendment) Rules 2021,” which were officially notified on June 15, 2022, following Board approval in August 2021.
According to NEPRA’s decision, while acknowledging PPIB’s operational requirements, any fee passed on to end-consumers must be justified and not place an undue burden on electricity affordability.”
It is pertinent to mention that NEPRA has forwarded the decision to the Federal Government for notification in the official Gazette, as required under Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. If the Federal Government does not notify the tariff decision within 30 days of receiving it, NEPRA will proceed to publish the decision in the official Gazette itself, in accordance with the same legal provision.
