- Public hearing of the NEPRA chaired by President Waseem Mukhtar.
- The objective of strategic adjustment is to reduce the volatility of prices.
- Additional reforms include reducing the indexing of operating rights costs.
Islamabad: The National Electric Power Regulatory Authority (NEPRA) has decided to stop using dollar -based indexations for Haveli Bahadur Shah, Balloki, Northern Power Generation Company Limited (NPGCL), and Central Power Generation Co. LTD (CPGCL) Power Power Petive.
This decision will open the way to the safeguard of RS1,6 Billions in the life of the remaining projects, The news reported.
The NEPRA summoned a public hearing, chaired by President Waseem Mukhtar, in its Islamabad offices on Thursday. The price changes in power plants in Haveli Bahadur Shah, Balloki, NPGCL and CPGCL were discussed during the hearing.
The objective of this strategic adjustment is to reduce the volatility of prices and exposure to foreign exchange of users. Additional reforms include reducing the indexing of operations and maintenance costs (O&M) by 100% to 70% of the rush devaluation.
Local spending of O&M will now be indexed to 5% or at the average of 12 months of the National Consumer Price Index (NCPI), according to the first possibility.
In addition, the actions yield structure (ROE) has been rationalized. Plants will now receive 35% of the ROA fixed, the remaining 65% linked directly to the real operation of the factory – a significant difference compared to the 100% previous ROE model.
These prudent measures will lead to a planned economy of RS1.6 Billions during the lifespan of projects, including 22 billion rupees during the current financial year, the press release said.
