Wapda requests Rs17 billion monthly payment for Net Hydel Profit amid rising hydroelectric receivables

The Water and Power Development Authority (Wapda) has called on the Central Power Purchasing Agency–Guaranteed (CPPA-G) to release Rs17 billion per month to ensure timely Net Hydel Brackly News (NHP) payments to the provincial governments of Khyber Pakhtunkhwa (KP) and Punjab, according to a news report.

The request, made in response to CPPA-G’s letter, highlights Wapda’s mounting hydroelectric receivables, which had reached Rs232.954 billion as of October 31, 2025. According to Wapda’s Member Finance, the outstanding amount includes Rs42.868 billion in energy receivables, Rs108.814 billion in NHP payables to the provinces (with KP owed Rs64.550 billion and Punjab Rs44.264 billion), and Rs81.272 billion in hydroelectric arrears. 

Despite these challenges, Wapda managed to pay Rs36 billion in NHP to KP during FY 2024-25, but current monthly releases from CPPA-G have proven insufficient. 

The water and power authority emphasised that the present funding falls short of the required Rs3 billion each for KP and Punjab, while also failing to meet essential operational and debt obligations. 

Furthermore, Wapda’s cash flow was severely strained by the service of Rs35.442 billion in circular debt liability related to the Diamer-Bhasha Dam, which was serviced against energy receivables rather than non-energy receivables.

In light of the growing NHP arrears, Wapda has urged CPPA-G to increase the monthly release to Rs17 billion for the provinces and clear the overdue hydroelectric receivables at the earliest. The situation has also prompted the KP government to seek a solution to the NHP dispute, requesting the Prime Minister’s intervention.

Despite the introduction of an interim arrangement in 2016, which pegged NHP payments at Rs1.10/kWh with a 5% annual indexation, the KP government claims that the payments have not been made consistently, resulting in an outstanding shortfall of Rs75 billion.

The issue remains unresolved, and an 0ut-of-the-box committee set up to address the matter has met five times so far, with the KP government submitting its proposal to the Planning Commission for consideration.