Nepra reduces return of 12 thermal plants

The return on equity revision will result in savings of around Rs 182 billion

Aftab Ahmed

The National Electric Power Regulatory Authority (NEPRA) has reduced the rate of return on equity (ROE) of 12 thermal power plants.

This will result in savings of about Rs 182 billion.

The NEPRA has reduced the components of the rate of return and Return on Equity During Construction (REDC) of these 12 thermal power plants established under the Power Generation Policy 2002 with a total net capacity of 2412 MW.

A NEPRA spokesperson said in a statement that the reduction in tariffs would result in a saving of around Rs 182 billion over the rest of the project’s lifetime.

The power regulator decided on the petition filed by the Central Power Generation Agency (CPPA-G). In addition, CPPA-G has filed tariff adjustment applications with NEPRA for a reduction in ROE and REEDC components of 12 thermal power plants.

As a result, CPPA-G requested a review of the ROE and REDC components based on a 17% return and a fixed exchange rate of Rs. US 148 / dollar for equity without a price reduction, while, for foreign equity with dollar index 12 revised ROE and REDC components.

Meanwhile, the authority accepted the petitions under the prevailing rules and regulations and then held a hearing on March 3, 2021.