ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Tuesday came under sharp criticism for allowing what consumer representatives termed unjustified costs to power sector entities such as the Central Power Purchasing Agency–Guaranteed (CPPA-G) without evaluating their previous year’s performance, thereby placing an additional burden on already overburdened electricity consumers. The criticism surfaced during a public hearing on CPPA-G’s petition seeking determination of its Market Operators Fee (MOF) for FY 2025-26. The hearing was presided over by NEPRA Chairman Waseem Mukhtar, Member (Law) Amina Ahmed, and Member (Development) Maqsood Anwar Khan. The Authority is currently operating with only three members. CPPA-G was represented by its CEO, Rihan Akhtar, who presented arguments in support of the petition. CPPA-G maps out five power price scenarios for 2026 Consumer representatives Rehan Jawed, Aamir Sheikh, and Arif Bilwani challenged CPPA-G’s figures, submissions, and the overall condition of the power sector, which they said had not only crippled industry but also harmed the national economy. In its petition CPPA-G sought a 61.5 percent increase in its net revenue requirement for FY 2025-26 to Rs4.664 billion from Rs2.887 billion. This would translate into a charge of 3.80 paisa per kWh in FY 2025-26, compared to 2.35 paisa per kWh previously based on projected energy of 122,723 GWh and an average MDI of 26,500 MW at Rs14.67 per kW per month. The proposed general cost for FY 2025-26 stands at Rs2.225 billion, including administrative expenses of Rs322 million, office operations, services and maintenance costs of Rs241 million, and CAPEX of Rs164 million, bringing the gross revenue requirement to Rs2.953 billion. Additional costs include recoverable loan advances to employees amounting to Rs409 million, new hiring costs of Rs298 million, and estimated taxes of Rs300 million. CPPA-G also sought Rs960 million as prior year adjustment (PYA), including Rs474 million on account of MLR and Rs343 million under other heads. After accounting for other income of Rs900 million and recovery of employee loans of Rs173 million, CPPA-G requested NEPRA’s approval for a net revenue requirement of Rs4.664 billion. CPPA-G’s core function is to procure electricity from power producers and sell it to distribution companies. Currently, outstanding dues of independent power producers (IPPs) stand at Rs1.2 trillion, including Rs500 billion owed to Chinese power plants established under the China-Pakistan Economic Corridor (CPEC). The entity also proposed about a 60 percent increase in board members’ fees, seeking Rs40 million for FY 2025-26, with a per-meeting fee of Rs60,000. During the hearing, Member (Law) Amina Ahmed asked about the number of board meetings held in the previous year. The CPPA-G CEO informed the authority that the board and its committees held a total of 40 meetings. Consumer representatives expressed surprise over Nepra’s leniency toward power sector entities, alleging that costs were being approved without scrutiny of past performance and despite overlapping functions among CPPA-G, Power Planning and Monitoring Company (PPMC), and Independent System and Market Operator (ISMO). “Nepra should scrutinise the past performance of CPPA-G and other entities before allowing additional costs, especially when the government has decided to exit electricity sale and purchase in the coming years,” said Rehan Jawed adding that “these entities have become a burden on consumers. Industries are shutting down due to high electricity costs, yet these organisations continue to seek higher expenditures.” Consumer representatives further stated that at a time of historic underperformance in Pakistan’s power sector, regulatory approvals and escalating costs of CPPA-G, PPMC, and ISMO had institutionalised inefficiency, with all failures ultimately passed on to consumers. Responding to the criticism, CEO Rihan Akhtar acknowledged that CPPA-G would eventually be wound up after the power purchase agreements (PPAs) of 104 IPPs expire over the next 14–15 years. However, he said the entity currently manages transactions worth approximately Rs4 trillion annually. Arif Bilwani criticised the inclusion of new power projects totaling 10,000 MW under the banner of “strategic projects” adding “please have mercy on the country, consumers, and industry, as the power sector has drowned the entire economy.” Aamir Sheikh, another industrial consumer, suggested that NEPRA should determine the revenues of CPPA-G, ISMO, and PPMC simultaneously to assess the overall financial impact and identify overlapping functions. He expressed concern that a 250-employee organisation was seeking Rs400 million in new loans annually and proposing provisions for Rs250 million in bonuses. “Industries that are unable to pay salaries on time due to high electricity prices are shocked that they are being asked to fund Rs40 crore in loans and Rs25 crore in bonuses for CPPA-G employees, in addition to attractive salary packages,” he said. Commenting on increased funding proposed for the IT department, Member (Development) Maqsood Anwar Khan remarked that it appeared CPPA-G was planning to establish an IT park. Copyright Business Recorder, 2025