Nepra revises tariffs of two IPPs

20 Jul, 2005

The National Electric Power Regulatory Authority (Nepra) has revised levelised tariff for 225 MW Orient Power Company Limited (OPCL) and 130 MW Star Power Limited to 4.55 cent and 4.65 per unit, respectively, an official told Business Recorder.
This was stated by the regulator's representatives at a meeting on tariff and licensing-related issues held under the chairmanship of Minister for Water and Power Liaquat Ali Jatoi here on Tuesday.
"We have revised the tariff for Star Power to 4.65 cent from 4.16 cent per unit which is quite reasonable," the official said quoting Nepra Chairman as having informed the meeting.
The company had demanded 4.79 cent per unit but Nepra's determination is far less than the demand. The indepedent power producer (IPP) did not accept the decision and filed a review petition with the backing of Prime Minister Secretariat and Ministry of Water and Power.
Nepra's representatives informed the meeting that tariff had been revised to 4.55 cent per unit for OPCL which would be conveyed to the government and the company on Wednesday, hoping that the decision would encourage investors, the official said.
PPIB Managing Director Zafar Ali Khan told this scribe that the revised determination was very close to the demand made by the IPP and would be a trend-setter for future investment in the power sector.
After finalisation of determinations for Star Power and OPCL, three or four more IPPs would submit their petitions with Nepra for tariff determination, he said, adding that PPIB was of the view that in future the process should be made more professional and expeditious.
Another official said that Japan Bank for International Co-operation (JBIC) was using different channels for setting up a thermal power plant in Korangi Karachi and a top level official was trying to defer it for some time.
However, an official said that the representatives of Japanese company Maruban, which says that soft term loan was available for the project would also meet President Pervez Musharraf on Wednesday.

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