National Electric Power Regulatory Authority (NEPRA) has once again declined the increase of Neelum Jhelum Hydropower Projects from the temporary rate of Rs. 9.1184/unit to Rs. 10.3/unit as proposed by the Water and Power Development Authority (WAPDA).
NEPRA was considering offering WAPDA some additional assistance. NEPRA asked if WAPDA wanted to either carry out a third-party valuation (TPV) or get an opinion from the Planning Commission as well.
WAPDA has requested NEPRA to increase the tariff of electricity by Rs. 1.1816 per unit for the Neelum Jhelum Hydropower Project however, NEPRA refused and asked WAPDA to carry out third-party validation of some elements related to the cost of the project, procurement procedure, etc., an official source told LESCO Bill Online.net
Company officials had another option that did not require getting regulatory clearance and could have saved a lot of time and money but they inexplicably rejected it, according to Company sources.
This is thanks to the condition of Third Party Validation (TPV) attached by the Economic Coordination Committee (ECC) to the revised Power Company-I (PC-I).
National Electric Power Regulatory Authority (NEPRA) has allowed Pakistan’s Water and Power Development Authority (Wapda) to charge a provisional tariff of Rs. 9.1184 per unit provided that pay-tariff adjustment is made after the new formula is approved by the regulator, which will be effective from October 17, 2019.
Wapda had also requested Nepra for revisiting the Pay Less/Pay More model and revised all in Levelized Tariff from Rs. 10.30 per unit to Rs. 12 per unit for 18 years and 30 years for consumers, respectively, but it was denied.
Earlier on June 26, 2021, NEPRA conducted a hearing on the tariff petition from NJHP Power and made it clear that it would not now allow any adjustment tariff until the Third Party Validation of the project is done or seeks exemption of this condition.
According to the government, the provisional tariff shall be subject to adjustment if the seller either gets a waiver on their obligation to implement TPV by ECNEC/relevant agency or performs TPV.