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NEPRA All Set To Change Machai Hydro power Tariff To Take And Pay Basis

admin-augaf by admin-augaf
October 17, 2021
in Business
Reading Time: 2 mins read
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NEPRA All Set To Change Machai Hydro power Tariff To Take And Pay Basis

NEPRA All Set To Change Machai Hydro power Tariff To Take And Pay Basis

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Islamabad October 17 2021: National Electric Power Regulatory Authority (NEPRA) is to hear a petition regarding tariff modification of 2.6 MW Machai Hydropower Project located at Mardan,

After approval tariff of the hydropower will be on take and pay basis, debt to be repaid in 30 years and RoE is reduced to 30 percent.

The project is located at Mardan, KPK The proposed capacity of the plant is 2.6 MW


A L S O || R E A D

K-Electric To Invest USD 1 Billion In Next Two Years: PSX - AUGAF


The petitioner has requested the Authority to allow Pre-COD sale of electricity at the tariff applicable for the first year of operations minus debt servicing component of tariff, allow tariff on take and pay basis and allow debt repayment period of 30 years.

Additional issues framed for the hearing are allowance of insurance during operations at a maximum of 1.35 percent of EPC or otherwise.

Moreover, NEPRA will also consider reduction in ROE & ROEDC from 17 percent with USD indexation to 10 percent without USD indexation, similar to the Federal Government recently,

Decision will also be made regarding Withholding Tax on Dividends @ 7.5% rate in the instant case or otherwise and provision for claw back of excess return or otherwise.

These changes will be subject to NEPRA hearing online on October 20, 2021.


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