ISLAMABAD: In line with the federal government’s renegotiated agreements, 11 Independent Power Producers (IPPs) have agreed to revise their electricity tariffs and have submitted a joint application to the National Electric Power Regulatory Authority (NEPRA).
According to official sources, the Central Power Purchasing Agency (CPPA-G), along with nine bagasse-based power plants and two IPPs operating under the 2002 Power Policy, submitted the joint tariff adjustment petition. NEPRA has scheduled a public hearing on April 16, 2025, to review the applications and assess proposed changes to the approved tariff structures.
The nine bagasse-based power plants include:
- Chiniot Power Ltd
- JDW Sugar Mills Ltd (Units II and III)
- Al-Moiz Industries Ltd
- Chanar Energy Ltd
- Thal Industries Corporation Ltd
- Hamza Sugar Mills Ltd
- RYK Mills Ltd
- Shahtaj Sugar Mills Ltd
Additionally, two IPPs operating under the 2002 Power Policy — Attock Gen Limited and Foundation Power Company Daharki Ltd — have joined the petition.
NEPRA stated that the key features of the applications are:
- Revision in the Fuel Cost Component (FCC)
- 50% reduction in the working capital component
- Fixation of Return on Equity (RoE) and Return on Equity During Construction (ROEDC) at 17% per annum, PKR-based, using a fixed exchange rate of PKR 168/USD without future dollar indexation
- 10% reduction in reference Operation and Maintenance (O&M) costs
- Revision of the O&M indexation mechanism
- Capping insurance costs at 0.7% of the approved EPC cost
- Permission for IPPs to sell electricity to Bulk Power Consumers (BPCs) under clause 2.1(i) of their agreements
The move follows the federal cabinet’s approval of renegotiated agreements with these IPPs in December 2024 and January 2025. The initiative is part of a broader strategy to reduce electricity tariffs and provide relief to consumers.
NEPRA has invited all stakeholders, affected parties, and members of the public to participate in the April 16 hearing. The applications are available on the NEPRA website, and all correspondence is to be directed to the NEPRA Registrar.
