ISLAMABAD: Taking notice of the changes in power purchase agreements (PPAs) by Independent Power Plants (IPPs) namely AES Lalpir and PakGen, National Electric Power Regulatory Authority (NEPRA) has sought an explanation from the two over the matter.
According to details, the authority has also asked for the comments of system operator, National Power Control Center (NPCC), details of PPAs approving authority, provision of partial loading of the said plants, if any, and consideration of financial implications and the resulting impact on end-user tariff in terms of Fuel Cost Adjustment (FCA).
In a letter to the Central Power Purchasing Agency’s (CPPA) chief executive officer (CEO), the regulator said that revision in minimum loading of M/s PakGen and M/s Lalpir from 20 percent (70MW) to 50pc (175MW) has a direct impact on the consumers-end tariff and therefore, directed CPPA to submit report in this regard within seven days.
Sources in the power sector said that a former National Transmission and Despatch Company (NTDC) managing director (MD), Dr Khawaja Riffat Ullah, had opposed changes in the minimum load of the two power plants and declared amendments contradictory to the regulations, adding that it would cause a loss of Rs15 billion per annum to the national exchequer as well as the masses.
It is pertinent to mention that the said agreements were signed in November 1999 and February 1998 under Power Policy,1994, with the approval of the federal cabinet’s Economic Coordination Committee (ECC).