ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has reduced the Return on Equity (RoE) of three nuclear power generation plants from 15pc to 14.5pc for the remaining life of these projects.
NEPRA, in a landmark decision on Wednesday, reduced RoE component of three nuclear power generation plants, namely the Chashma Nuclear Power Plant Unit-2 (C-2), C-3 and C-4, having a cumulative net capacity of 931MW. As per the authority, the reduction in tariff will result in savings of Rs2.05 billion per year (average Rs0.2515/unit) for the remaining life of the nuclear power plants i.e. 25-37 years approximately.
Earlier, the said nuclear power generation plants, in line with Cabinet Committee on Energy (CCOE) decision of 27th August 2020, had filed petitions with NEPRA for reduction in their RoE components on account of reduced RoE rate, besides freezing of exchange rate at Rs148 per dollar.
NEPRA, under the prevailing rules and regulations, had accordingly admitted the same and conducted a hearing in this regard on 13th January, 2021. Subsequently, the authority decided to freeze the exchange rate at Rs148 per dollar and reduce the ROE from 15pc to 14.5pc for the remaining life of these projects.