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7 IPPs, CPPA -G joint tariff reduction application lands in NEPRA

by AMG
March 17, 2025
in Energy
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ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has admitted a joint tariff reduction application filed by seven Independent Power Producers (IPPs) established under Power Generation Policy 2002 and Central Power Purchasing Agency – Guaranteed (CPPA-G) , official sources told Newzshewz.
The following IPPs have filed applications for reduction in tariffs as per agreements with the Government’s Task Force headed by Minister for Power, Sardar Awais Leghari ;(i) Nishat Chunian Power Limited ;(ii) Nishat Power Limited;(iii) Narowal Energy Limited ;(iv) Liberty Power Tech Limited ;(v) Engro Powergen Qadirpur Limited ;(vi) Saphire Electric Power Limited ; and (vii) Saif Power Limited.
The task force headed by Minister for Power, Sardar Awais Khan Leghari and comprising SAPM on Power, Muhammad Ali, National Coordinator, Lt. General, Muhammad Zafar Iqbal, Chairman NEPRA, CEO CPPA-G, Managing Director, PPIB and experts from NEPRA, CPPA-G and SECP, is engaged with the IPPs of 1994 and 2002.
Salient features of the application are summarized are as follows ;(i) revision in O&M components and indexation mechanism ;(ii) adjustment of cost of working capital component and indexation mechanism ;(iii) revision of insurance cap to 0.90 per cent of the approved EPC cost; and (iv) hybrid take and pay mechanism for RoE/RoEDC with no further indexation.
NEPRA has sought comments from all stakeholders, interested parties/ affected persons and the general public. The Authority will also hold a public hearing in the matter on March 24, 2025.
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