CPPA-G, state-run power firms seek tariff cuts for government-owned plants

NEPRA to hold public hearing on April 24 on tariff cut petitions

The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), in collaboration with four government-owned power generation companies, has submitted joint applications to the National Electric Power Regulatory Authority (NEPRA), seeking reductions in key tariff components for government-owned power plants.

According to available documents, NEPRA has admitted the applications and scheduled a public hearing on the matter for April 24, 2025.

The applications have been filed on behalf of the National Power Parks Management Company’s Balloki and Haveli Bahadur Shah power plants, the 747 MW Guddu plant operated by the Central Power Generation Company Limited, and the Nandipur power plant managed by the Northern Power Generation Company Limited.

The petitioners have proposed several revisions to the existing tariff structure. These include adjustments to the operations and maintenance (O&M) indexation mechanism, a reduction in the insurance cap to 0.80% or 0.90% of the approved Engineering, Procurement, and Construction (EPC) cost, and the introduction of a hybrid “Take and Pay” payment mechanism for Return on Equity (ROE) and Return on Equity During Construction (ROEDC), with no future indexation.

NEPRA has made the applications publicly available on its official website. The regulatory authority has invited stakeholders, interested or affected parties, and members of the general public to review the documents and participate in the scheduled hearing. All communications in this regard should be directed to the NEPRA Registrar.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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