NEPRA Reduces Tariff Of 12 Thermal Power Plants

National Electric Power Regulatory Authority (NEPRA) in a landmark decision 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 2412 MW set up under 2002 Power Generation Policy

ISLAMABAD, (UrduPoint / Pakistan Point News - 2nd Apr, 2021 ) :National Electric Power Regulatory Authority (NEPRA) in a landmark decision 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 2412 MW set up under 2002 Power Generation Policy.

The reduction in tariff will result in estimated saving of Rs. 182 billion over the remaining life of the projects, said a press release issued here Friday.

It is apprised that Central Power Generation Agency (CPPA-G) filed tariff adjustment applications with NEPRA for reduction in ROE and ROEDC components of 12 thermal power plants.

CPPA-G requested to revise ROE and ROEDC components on the basis of 17 per cent return and fixed exchange rate of Rs.

148/US$ without Dollar indexation for local equity, whereas, revised ROE and ROEDC components on the basis of 12 per cent 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.

After detailed deliberations, the Authority decided on Friday by revising the ROE and ROEDC components for local equity on the basis of 17 percent return and fixed exchange rate of Rs. 148/US$ without future indexation and ROE and ROEDC components for foreign equity on the basis of 12% return with future dollar indexation.

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