Nepra approves tariff for electricity import from Iran

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved tariff with the range of 12.40 Cents/kWh for import of 104 MW electricity and an additional 100 MW from Iran’s state-owned power company, TAVANIR, while expressing serious concerns over procedural violations and lack of long-term planning by Pakistani authorities.

The decision comes in response to an application filed by the Central Power Purchasing Agency-Guarantee Limited (CPPA-G), following the Economic Coordination Committee’s (ECC) approval in August 2023 to extend and expand the cross-border electricity supply agreement.

The CPPA-G had sought approval for extending the tariff of the existing 104 MW supply and securing an additional 100 MW through amendments to the long-standing power purchase agreement with Iran.

READ MORE: Pakistan, Iran agree to extend power sale agreement

The agreement, originally signed in 2002, has undergone multiple revisions. The latest amendments—Nos 7, 8, and 9—outline revised tariff mechanisms, payment terms, and technical arrangements for power transmission.

Amendment 7(which has expired) extended tariff terms until December 31, 2024, with payment settlement required within 45 days.

Likewise, amendment 8 provided for an additional 100 MW supply via the Polan-Gabd transmission line, requiring infrastructure development on both sides of the border.

The new proposed amendment 9 has introduced a revised tariff formula linked to global oil prices, according to which electricity pricing includes a fixed component plus a variable element tied to the monthly average OPEC oil price. This will result in delivered energy tariff to remain within the range of 12.40 Cents/kWh.

Despite approving the amendments, the NEPRA strongly criticized CPPA-G for repeatedly submitting agreements after execution, in violation of regulatory requirements.

The Authority noted that amendments were presented ex post facto, contrary to mandatory prior approval rules under EPPR 2022. The tariff extension request was submitted in September 2023, although it covered a period starting January 2022.

Earlier directives to ensure timely submissions were ignored, indicating systemic procedural lapses.

The NEPRA warned that future delays or post-facto approvals would invite serious regulatory consequences.

The Authority acknowledged that there is no immediate alternative to imported electricity for Balochistan’s Makran region, which continues to rely heavily on Iranian supply.

Copyright Business Recorder, 2026