ISLAMABAD : The Senate Standing Committee on Power headed by Senator Mohsin Aziz has sought details of formula on which National Electric Power Regulatory Authority (NEPRA) had determined Rate of Return for the Independent Power Producers (IPPs), sources told Newzshewz.
The IPPs which have already passed through a painful time during negotiations with the Task Force on Power Sector are now seeking NEPRAs’ nod for revision of their contracts. However, a couple of IPPs have rejected the formula offered by the Task Force. One of them i.e. Halmore is facing forensic audit through NEPRA while details of M/s Orient Power former SAPM on Petroleum are not available.
Some analysts are of the view that NEPRA which gave exorbitant tariffs to IPPs, is now allowing them to reduce their tariffs and costs, which is question mark on the independence or power sector regulator.
” What is being shared by the Government, the Regulator is putting its stamp on those documents with an extraordinary speed,” the analysts added.
According to sources, Senate Standing Committee on Power has sought the following information from Power Division pertaining to the IPPS: (i) complete details of the private sector IPPs currently operating in Pakistan along with total costs of each plant? (ii) the year in which each private sector IPP was established and made operational along with the detail of the Government of that time and the competent authority which approved the same; the details of the technology and engines imported by these plants along with the details of the suppliers ;(iii) what was the heat efficiency and cost structures of these projects as compared to the similar plants installed in other countries at that time particularly those using the same technology supplied by the same suppliers? ;(iv) the rate of return offered to these IPPs and the formula upon which the RoI was determined by NEPRA ;(v) the steps taken by the Government for recovery of the amount in the cases where the rate of return reported in the financial statements exceeded the NEPRA-approved threshold.
Foregoing in view, Power Committee’s Secretariat has requested Power Division to obtain the requisitioned information from the concerned quarters and transmit it for perusal of Chairman Committee as it will also be part of upcoming meeting of the Committee . Ends
