Electricity tariff may rise to Rs27.31 per unit from January 2027

Electricity purchase costs in Pakistan may increase to Rs27.309 per kilowatt-hour (unit) in 2027, raising the possibility of a new electricity tariff of around Rs27.31 per unit from January 1, 2027.

The Central Power Purchasing Agency (CPPA) has projected a total electricity purchase cost of Rs3.55 trillion under its base-case estimates for the upcoming tariff review.

The estimates are part of the process to revise electricity tariffs for consumers served by the former power distribution companies of WAPDA. The revised rates are expected to take effect from January 1, 2027.

As part of the review, the relevant authorities will determine a revised reference cost for the next tariff period. This cost will serve as the basis for setting electricity rates for consumers.

The projected purchase cost of Rs27.309 per unit will be an important factor in determining the new tariff. However, the final rates will depend on the outcome of the tariff review and approval by the relevant authorities.

The proposed revision is part of the regular process of determining electricity prices based on projected power purchase costs and other relevant factors. The new rates, once finalised, will determine the amount consumers pay for electricity during the next tariff period.