Nepra raises Chasnupp tariff to Rs 2.66/kWh

The National Electric Power Regulatory Authority (Nepra) has determined tariff for Chashma nuclear power plant (Chasnupp) providing 300 MW power to the National Transmission and Dispatch Company. Chasnupp has been selling electricity to Wapda/NTDC at the rate of Rs 2.25/kwh, according to the decision of Finance Division (U.O.NO.F.5(3) CF-1/2001.
The plant suffered a revenue shortfall due to the low tariff allowed by ECC and therefore requested Nepra to determine its tariff so that it is able to recover its cost and is able to pay its debt service liability. It also requested that it should be allowed to recover the past shortfall in revenue through future tariff.
A conference/hearing was held on August 19, 2004, at Nepra's main office to deliberate on the various issues and to afford an opportunity the petitioner to present its case in support of its demand for enhancement of its tariff to Rs 3.17/kWh.
PNRA, NTDC & Member Power, Wapda as representatives of the affected/interested parties and who had submitted their views to Nepra earlier, were also invited to attend the conference. Based on the evidence and arguments submitted by the petitioner in support of its case and the analysis carried out by Nepra's experts the Authority has decided to allow Chasnupp a tariff of Rs 2.66/kWh for sale of its power to NTDC up to June 2008.
Chasnupp has thus been allowed to raise its tariff by about 18 percent. The revised tariff averages to about 4.44 cents a kWh, which is still much lower than the most of IPPs, which range from 6 to 9 cents a kWh. The Pakistan Nuclear Regulatory Authority is monitoring the safety aspect with respect to the nuclear part of the process whereas Nepra is regulating the power generation part.
In view of the imminent shortage of power generation capacity in the country the induction and enhancement of nuclear power generation in the country will contribute significantly in the provision of a reliable source of power to the electricity consumers through the national grid.
The Authority in its order, to be notified in official Gazette by Federal Government for its implementation, also prescribed a 'Capacity Charge Adjustment Factor' (CCAF) where Chasnupp will be penalised for availability below 60 percent and rewarded for availability in excess of 75 percent.