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Nepra: 12 thermal plants cut to 17 percent

bySidra Butt
April 3, 2021
in Business, Economy, Finance, New
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On Friday the National Electric Power Regulatory Authority [Nepra] reduced tariff of 12 thermal power plants established under the power Generation Policy,2002. The move will save Rs 182 billion approximately during the remaining life of the projects.

“In a landmark decision on Friday, Nepra has reduced the Return on Equity (ROE) and Return on Equity During Construction (ROEDC) components of 12 thermal power plants having cumulative net capacity of 2,412 MW. The reduction in tariff will result in an estimated saving of Rs182bn over the remaining life of the projects,” a press release issued by Nepra said. 

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It is worth mentioning that the Central Power Generation Agency (CPPA-G) filed tariff adjustment applications with Nepra for reduction in ROE and ROEDC components of 12 plants. The CPPA-G requested to revise ROE and ROEDC components on the basis of 17 per cent return and fixed exchange rate of Rs148 per US dollar without dollar indexation for local equity, whereas, revised ROE and ROEDC components on the basis of 12pc return with dollar indexation for foreign equity.

The authority under the prevailing rules and regulations admitted the applications and subsequently conducted a hearing in the matter on March 3, 2021.

Tags: CPPA-GDollarPowerplantsROEROEDC
Sidra Butt

Sidra Butt

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