Suki Kinari Hydropower seeks 4% tariff hike as Nepra questions proposed changes in tariff and project costs

Profit by Pakistan Today, citing Business Recorder, reported that the 884-MW Suki Kinari Hydropower Project wants its levelised tariff lifted from Rs9.04 to Rs9.40 per unit. The National Electric Power Regulatory Authority has responded with more than a dozen questions about the company's proposed revisions to tariff and project costs. The biggest driver is the Water Use Charge, which the company wants pushed from Re0.15 to Re0.425 per kWh, a rise of roughly 183%.

Nepra wants justification for other cost changes, including an extra $28.985 million for permanently diverting the N-15 Highway and a $28.604 million reduction in EPC costs tied to design modifications. It also queried a revised contract capacity figure moving from 861.548 MW up to 875.160 MW, tied to a capacity increase. Pandemic-related claims of $30 million, along with $15.5 million for accelerating progress afterward, plus security outlays of Rs918.635 million for construction-phase infrastructure and Rs1.946 billion for security during operations, are also under review.

Other points under scrutiny include Provincial Sales Tax on Services, Sindh Infrastructure Cess rates, discontinued indices for civil works indexation and the interest calculation method. A public hearing on the tariff change is set for October 1, 2026, and interested parties must submit intervention requests within one week. The project was set up through the China-Pakistan Economic Corridor, or CPEC.