ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has disposed off upfront tariff review petition of JWD Sugar Mills of Jahangir Khan Tareen on the plea that the petitioner did not submit any concrete justification for review of existing tariff.
The petitioner had requested the Authority to review the following: (i) power evacuation scheme; (ii) payment of fuel during season; (iii) plant factor; (iv) penalty mechanism; (v) project cost and efficiency; (vi) fuel pricing and indexation mechanism; (vii) debt to equity ratio; (viii) internal rate of return; (ix) withholding tax on dividend; (x) cost of debt; (xi) working capital; (xi) operation and maintenance cost; (xii) financial close and construction period.
The matter was considered by the Authority multiple times but delayed due to litigations filed by CPPA-G in other bagasse related cases. During the process, it was considered that the hearing held on April 26, 2018 was conducted by the two members of the existing Authority. Hence, it was decided to provide the petitioner another opportunity of hearing so that the current Authority members can decide the matter after listening to the grounds of the petitioner.
Accordingly, the hearing on this matter was first scheduled for March 16, 2020 but was postponed due to other commitments of the Authority. Later, the hearing was scheduled for June 16, 2020, however, it was adjourned on the request of the petitioner. The hearing was then fixed for August 18, 2020. Notices of the hearing were issued to the petitioner and relevant stakeholders on August 06, 2020. It was communicated to JDW Sugar Mills that this will be the last opportunity of hearing and in case the same is not attended by the petitioner, the Authority shall proceed on the subject case as per the available record. However, the petitioner did not attend the hearing scheduled for August 18, 2020.
The Authority has considered all the arguments put forth by the petitioner in the review motion. Also, the submissions advanced by CPPA-G were given due deliberation. The Authority noted that all the bases to decide the parameters of Upfront Tariff, 2017 were explained in detail in the determination.
The petitioner has not been able to put forth any new and important matter of evidence or any other sufficient reasons, as required under the relevant law, which warrant the review of Upfront Tariff, 2017, hence, the Authority has decided not to change the tariff.
Copyright Business Recorder, 2020
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