What is the IGCEP 2025-35 and why does it affect my electricity bill?

The IGCEP 2025-35 is Pakistan's ten-year plan for adding generation capacity to the national grid, covering hydro, nuclear, solar, wind, and thermal projects through to 2035. The cost projections embedded in the plan feed directly into future electricity tariffs, so its assumptions determine what every household and business connected to a DISCO — or to K-Electric — will pay for power over the next decade.

Why does the FPCCI say the IGCEP 2025-35 costing is fundamentally flawed?

The FPCCI says cost optimisation was disabled in the PLEXOS modelling software used to build the plan, and the model was biased toward projects already committed rather than the cheapest available options. It also points out that $10.6 billion (≈ Rs. 2.95 trillion) in transmission system costs was excluded from the calculations entirely, making any 'least cost' claim misleading.

How much higher could my electricity bill go under the current IGCEP projections?

The cheapest tariff the IGCEP model produces is Rs. 49 per unit, compared to the current average of approximately Rs. 33.38 per unit — a rise of nearly 47 percent. For a household consuming 300 units per month, that gap would push the base electricity charge from roughly Rs. 10,000 to over Rs. 14,700 per month, before taxes, fixed charges, or fuel cost adjustments.

Does the IGCEP 2025-35 issue apply to K-Electric customers in Karachi?

K-Electric operates its own generation and distribution network, but it is regulated by NEPRA and connected to national capacity planning and tariff frameworks. If national tariffs rise significantly as a result of IGCEP commitments and WAPDA cost overruns, K-Electric customers in Karachi are likely to face similar upward pressure on their bills over the plan period.

Will NEPRA change the IGCEP based on the FPCCI's objections?

NEPRA is not obligated to accept the FPCCI's recommendations, but a formal objection submitted after a public hearing gives the regulator a legal basis to request a revised, affordability-tested plan before granting approval. A NEPRA decision on the IGCEP 2025-35 is expected after the public consultation period concludes.

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FPCCI Rejects IGCEP 2025-35 Over Flawed Modelling and Rs. 49 Per Unit Tariff Risk

The FPCCI has formally objected to the IGCEP 2025-35, telling NEPRA the plan's PLEXOS-based costing is fundamentally flawed and that its cheapest tariff projection of Rs. 49 per unit has never been tested for consumer affordability. The federation warns that committing over $57 billion to generation and transmission offers no guarantee that consumer tariffs will stay at or below today's Rs. 33.38 per unit average.

PowerPost AI Bureau · Reviewed by Editorial TeamMay 30, 20263 min read1 views

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The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has formally rejected the Indicative Generation Capacity Expansion Plan 2025–35 (IGCEP 2025-35), submitting written objections to NEPRA (the National Electric Power Regulatory Authority) following a public hearing on 20 May 2026. The federation's Energy Advisory Committee says the plan's modelling contains incorrect assumptions and a pre-committed project bias — and that even its cheapest projected tariff of Rs. 49 per unit has never been assessed for whether ordinary consumers and businesses can actually afford it.

What Is the IGCEP 2025-35?

The IGCEP 2025-35 is Pakistan's ten-year blueprint for expanding national generation capacity. It is prepared by NTDC (the National Transmission and Despatch Company) and formally reviewed by NEPRA. The plan determines which power projects — hydro, nuclear, solar, wind, and thermal — will come online between 2025 and 2035, and its tariff projections feed directly into what every household and factory across Pakistan pays for electricity for the next decade.

The FPCCI's Core Objections

Flawed Modelling Tool

The plan relies on PLEXOS — a globally-used software for modelling and optimising power systems — but the FPCCI says cost optimisation was deliberately disabled in the version used to build the plan. The model also carries a pre-committed project bias, meaning projects already in the pipeline are favoured regardless of whether cheaper alternatives exist.

Missing Rs. 2.95 Trillion in Transmission Costs

The Transmission System Expansion Plan 2025-35 (TSEP), valued at approximately $10.6 billion (≈ Rs. 2.95 trillion) at current interbank rates, was excluded from the IGCEP's cost calculations entirely. The FPCCI argues that any credible

Frequently Asked

Questions about this story

What is the IGCEP 2025-35 and why does it affect my electricity bill?
The IGCEP 2025-35 is Pakistan's ten-year plan for adding generation capacity to the national grid, covering hydro, nuclear, solar, wind, and thermal projects through to 2035. The cost projections embedded in the plan feed directly into future electricity tariffs, so its assumptions determine what every household and business connected to a DISCO — or to K-Electric — will pay for power over the next decade.
Why does the FPCCI say the IGCEP 2025-35 costing is fundamentally flawed?
The FPCCI says cost optimisation was disabled in the PLEXOS modelling software used to build the plan, and the model was biased toward projects already committed rather than the cheapest available options. It also points out that $10.6 billion (≈ Rs. 2.95 trillion) in transmission system costs was excluded from the calculations entirely, making any 'least cost' claim misleading.
How much higher could my electricity bill go under the current IGCEP projections?
The cheapest tariff the IGCEP model produces is Rs. 49 per unit, compared to the current average of approximately Rs. 33.38 per unit — a rise of nearly 47 percent. For a household consuming 300 units per month, that gap would push the base electricity charge from roughly Rs. 10,000 to over Rs. 14,700 per month, before taxes, fixed charges, or fuel cost adjustments.
Does the IGCEP 2025-35 issue apply to K-Electric customers in Karachi?
K-Electric operates its own generation and distribution network, but it is regulated by NEPRA and connected to national capacity planning and tariff frameworks. If national tariffs rise significantly as a result of IGCEP commitments and WAPDA cost overruns, K-Electric customers in Karachi are likely to face similar upward pressure on their bills over the plan period.
Will NEPRA change the IGCEP based on the FPCCI's objections?
NEPRA is not obligated to accept the FPCCI's recommendations, but a formal objection submitted after a public hearing gives the regulator a legal basis to request a revised, affordability-tested plan before granting approval. A NEPRA decision on the IGCEP 2025-35 is expected after the public consultation period concludes.

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