ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) approved K-Electric’s request for a seven-year multi-year tariff with a 14 percent dollar-indexed return on equity (ROE) for all of its generation plants in a majority vote. The member tariff of the regulator has voiced strong opposition to the decision, describing it as unfair to consumers.
In its assurance delivered on Tuesday with respect to K-Electric’s request documented quite a while back, Nepra endorsed the levy on a ‘take-or-pay’ reason for KE power plants utilizing different fills, including high velocity diesel (HSD), for the control time of seven years or the leftover helpful existence of the plants, whichever is more limited — with the exception of the most recent BQPS-III, which will have a 11-year duration. Notably, Unit-I and Unit-II of the BQPS have already reached the end of their useful lives, whereas Unit-III still has two years left.
The regulator decided to allow “take-or-pay” for RLNG under the current arrangements, but not for other plants, when deciding whether to classify KE plants as must-run for economic merit order.
It approved fuel cost components of Rs43.3356 to Rs50.7461 per unit for HSD in combined cycle operations, Rs20.6731 to Rs41.7506 for RLNG-based plants, Rs33.3197 to Rs34.6414 for RFO-based plants, and Rs6.8385 to Rs9.6249 for gas-based plants.
