ISLAMABAD : National Electric Power Regulatory Authority has rectified an error identified in the calculation of cost of working capital in the decision of the Authority under NEPRA (Review Procedure) Regulations , 2009 regarding decision in the matter of Motion for Leave for review May, 2024, for CIHC Pak Power Company (Pvt ) Limited (CPPCL).
According to the revised decision, error has been indentified on account of45 days fuel inventory instead of approved 90 days and load factor of 85% instead of approved 100% on receivable which needs to be rectified.
The approved cost of working capital of Rs 0.8413/kWh shall stand replaced with Rs. l.4320/ kWh .
In addition to the above, a typo error has been observed wherein CAS was specified as 0.34% instead of 0.26% used in the calculation. Accordingly 0.34% has been replaced with 0 26%.
Accordingly, in pursuance of Section 7(2)(g) of the Regulation of Generation, transmission and distribution of Electric Power Act, 1997 read with Regulation 3 of NEPRA (Review Procedure) Regulations, 2009, the above errors and omissions have been rectified and relevant pages and annexure are being replaced with the attached revised pages and revised Anne. The decision of the Authority is to be notified in the Official Gazette along with decision of May 14, 2024 in accordance with the provisions of Section 3l(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997.
As per previous decision of the Authority. annual insurance during operation @ 0 70% of EPC cost has been accounted for in calculation of insurance component of tariff’. The levelized tariff will be Cents 9.3314 per unit against the request of Cents 10.0947 per unit.
Since the exact timing of payment to EPC contactor is not know at this point of time, therefore, an adjustment for relevant foreign currency fluctuation for the EPC portion of payment in the foreign currency shall be made against the reference exchange rate of Rs. 278.50/ $ or the basis of actual payment. The adjustment shall be made only for the currency fluctuation against the reference parity value. The onshore portion shall not be subject to any inflationary adjustment or exchange rate adjustment in the future .
Foreign payments, if any in respect of project cost items except for onshore EPC payments shall also be subject to exchange rate variation against the reference exchange rate of Rs. 278.50/ $ at the time of COD tariff true up on the basis of actual payment in dollars.
The revised approved project cost in local currency shall remain fixed and no further indexation/adjustment would be allowed on these costs in future. Ends
