Return on equity of 12 thermal plants cut to 17pc: Nepra

Published April 3, 2021
The National Electric Power Regulatory Authority (Nepra) on Friday reduced tariff of 12 thermal power plants established under the Power Generation Policy, 2002.  — APP/File
The National Electric Power Regulatory Authority (Nepra) on Friday reduced tariff of 12 thermal power plants established under the Power Generation Policy, 2002. — APP/File

LAHORE: The National Electric Power Regulatory Authority (Nepra) on Friday reduced tariff of 12 thermal power plants established under the Power Generation Policy, 2002. The move will save Rs182 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 estimated saving of Rs182bn over the remaining life of the projects,” a press release issued by Nepra said.

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.

After detailed deliberations, the authority decided to revise the ROE and ROEDC components for local equity on the basis of 17pc return and fixed exchange rate of Rs148 per US dollar without future indexation and ROE and ROEDC components for foreign equity on the basis of 12pc return with future dollar indexation.

Nepra member for KP

Meanwhile, Engineer Maq­sood Anwar Khan has been appointed Member Nepra from Khyber Pakhtunkhwa for a period of four years.

Mr Khan, who is Pakh­tunkhwa Energy Development Organisation’s Chief Engineer (Operation & Commercial), has played key role in introduction of the province’s first wheeling model for provision of inexpensive electricity to industrial consumers for its speedy development.

Published in Dawn, April 3rd, 2021

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