The Central Power Purchasing Agency-Guarantee (CPPA-G) has officially sought a revenue requirement of Rs3.37 billion for the fiscal year 2026-27. In a formal petition submitted to the National Electric Power Regulatory Authority (NEPRA), the agency has proposed a monthly fee of Rs14.47 per kilowatt to meet its operational and administrative needs for the upcoming year.
According to the official notice issued by the power regulator, the CPPA-G is requesting approval for a single-year tariff structure for FY27. This move deviates from the standard multi-year tariff framework, prompting the regulator to seek further clarification on the necessity of this specific approach.
The breakdown of the requested revenue requirement, prior to any adjustments, includes Rs2.329 billion allocated for general establishment costs. Additionally, the agency has earmarked Rs349 million for administrative expenses, Rs237 million for office operations and maintenance, and Rs151 million for capital expenditure to upgrade its existing infrastructure.
Furthermore, the agency has requested Rs175 million to facilitate new hiring, Rs245 million to cover various tax liabilities, and Rs68 million for recoverable loan advances to its employees. These figures reflect the agency's projected financial roadmap for the next fiscal cycle.
To arrive at the net revenue requirement, the agency accounted for several financial offsets. These include a prior-year adjustment of Rs471 million, other income streams totaling Rs550 million, and Rs106 million recovered from employee loans.
After these deductions, the final net revenue requirement stands at Rs3.369 billion. The financial calculations provided by the CPPA-G are based on an average maximum demand indicator of 19,400 megawatts.
This metric serves as the baseline for determining the tariff impact on the national power grid and the end consumers. NEPRA has scheduled a public hearing for 27 October to conduct a thorough examination of the petition.
The primary objective of this session is to determine whether the requested costs and the proposed tariff structure are justified under current economic conditions. A critical point of discussion during the hearing will be the regulator's inquiry into why the CPPA-G is seeking an exemption from filing a multi-year tariff petition.
The regulator intends to scrutinize whether the agency has sufficient grounds to justify a single-year tariff for FY27. The hearing will also delve into the specific justifications for the agency's establishment and administrative expenses.
Experts and stakeholders will be invited to provide input on the proposed hiring plans, office maintenance costs, and the overall capital expenditure strategy. Ultimately, the decision made by NEPRA following the 27 October hearing will determine the financial trajectory of the CPPA-G for the next fiscal year, impacting the broader energy sector's regulatory landscape in Pakistan.