The National Electric Power Regulatory Authority (Nepra) has approved a revised Market Operation Fee (MOF) of Rs10.5248 per kW per month for the Central Power Purchasing Agency-Guarantee (CPPA-G) for FY2025-26, significantly lower than the Rs14.67 per kW per month sought by the agency.

According to Nepra's determination issued on June 29, 2026, the regulator conducted a comprehensive review of CPPA-G's revenue requirements, operational costs, and expenditure estimates before approving the revised fee structure.

CPPA-G had requested approval of a total net revenue requirement of up to Rs4.66 billion, incorporating operational expenses, prior-year adjustments, administrative costs, capital expenditure, taxes, and legal expenses. Following its assessment, Nepra allowed only prudent and justified costs to be recovered through the approved market operation fee.

A significant portion of the petition related to employee salaries, benefits, and workforce expansion. The agency argued that most of its employees are highly skilled professionals responsible for managing electricity purchase transactions exceeding Rs4 trillion, requiring competitive compensation to retain talent.

After detailed scrutiny, Nepra approved Rs1.585 billion for salaries and wages, allowing a 10.49% salary increase, slightly below the 11% requested by CPPA-G. Employee-related benefits amounting to Rs249 million were also approved.

The regulator, however, reduced the proposed employee bonus, allowing payment equivalent to one basic salary worth Rs55.64 million, instead of the requested 1.5 gross salaries.

Regarding human resource expansion, Nepra approved Rs109.71 million for recruitment covering 26 positions already filled, while directing CPPA-G to seek regulatory approval before undertaking any future hiring beyond the approved level.

Training and capacity-building expenditures were also rationalized. Against CPPA-G's request for Rs32 million, the regulator approved Rs8.58 million, citing actual expenditure trends and lower requirements following the separation of the market operator function.

Nepra also reviewed consultancy, administrative, legal, and operational expenses to ensure that only efficient and necessary costs were passed on through the approved tariff. The authority emphasized that CPPA-G's operating expenses ultimately affect electricity consumers, making cost optimization a key regulatory priority.

Alongside the tariff determination, Nepra directed CPPA-G to transition to a Multi-Year Tariff (MYT) framework for future petitions and submit updated power purchase forecasts, human resource reports, legal case updates, transmission loss reconciliations, and detailed operational data on a regular basis.

The regulator further instructed the agency to obtain prior approval before incurring any expenditure beyond the approved cost limits for FY2025-26 and reaffirmed its commitment to balancing operational efficiency with consumer protection in Pakistan's power sector.

The determination has been forwarded to the federal government for notification in the official Gazette. If not notified within 30 days, Nepra will issue the notification itself.