Nepra approves cut in tariffs to help govt save Rs150bn

The National Electric Power Regulatory Authority (Nepra) gave approval for the reduction from 17 to 12-13 percent in the Return on Equity RoE, Return on Equity during Construction (RoEDC), Operation & Maintenance and Insurance components of a total of 12 renewable independent power producers (IPPs) under renegotiated tariff contracts with the government.

The regulator confirmed that reduction in tariffs will result in estimated savings of around Rs150 billion over the remaining life of the projects. Seven projects are based on bagasse, three on wind and two solar having cumulative capacity of around 355MW. Furthermore, the tariff share of these IPPs for energy generation beyond their respective annual plant factors has also been reduced.