Islamabad-NEPRA has reduced the Return on Equity (RoE) and Return on EquityDuring Construction (RoEDC) components of 12 thermal power plants, whichwill result in an estimated saving of Rs. 182 billion.
Nepra has reduced the Return on Equity (RoE) and Return on Equity DuringConstruction (RoEDC) components of 12 thermal power plants, establishedunder power generation policy 2002, having cumulative net capacity of 2412MW, said Nepra spokesman in a statement issued. The reduction in tariffwill result in estimated saving of Rs 182 billion over the remaining lifeof the projects, he said.
The decision was made on the request, filed by the Central Power GenerationAgency (CPPA-G). Central Power Generation Agency (CPPA-G) filed tariffadjustment applications with Nepra for reduction in RoE and RoEDCcomponents of twelve thermal power plants. CPPA-G requested to revise RoEand RoEDC components on the basis of 17 per cent return and fixed exchangerate of Rs. 148/$ without dollar indexation for local equity, whereas,revised RoE and RoEDC components on the basis of 12 per cent return withdollar indexation for foreign equity.
The Authority, under the prevailing rules and regulations admitted theapplications and subsequently conducted a hearing in the matter on March03, 2021. After detailed deliberations, the Authority decided on April 02,2021 by revising the RoE and RoEDC components for local equity on the basisof 17 per cent return and fixed exchange rate of Rs. 148/$ without futureindexation and RoE and RoEDC components for foreign equity on the basis of12 per cent return with future dollar indexation. It is worth to mentionhere that earlier Nepra had reduced the Return on Equity (RoE) of threenuclear power generation plants of 931MW which will result in saving ofapproximately Rs 2.05 billion annually for next 25-37 years.
Nepra, in a landmark decision, had reduced the RoE component of threenuclear power generation plants including C-2, C-3, and C-4 and has slashedthe tariff by Re. 0.2515 per unit.
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It is apprised that the above nuclear power generation plants, in line withCabinet Committee on Energy (CCoE) decision of 27th August 2020, have filedpetitions with Nepra for reduction in their RoE components on account ofreduced RoE rate and freezing exchange rate to Rs. 148/$. The Nepra,after public hearing decided to freeze the exchange rate at Rs.148/$ andreduce the RoE from 15 per cent to 14.5 per cent for the remaining life ofthese projects.
Last month, the National Electric Power Regulatory Authority was informedby the government that agreements with 30 out of 47 IPPs have been signed.
