As per terms agreed with task force: CPPA-G, Attock Gen file tariff revision plea

ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) and 156 MW Attock Gen Limited have filed a joint application for revision in existing tariff of the project as per the terms and conditions agreed with the Task Force on Power subject to withdrawal of proceedings for abnormal profits.

Both the CPPA-G and Attock Gen have agreed on a “hybrid take and pay” mechanism like other Independent Power Producers (IPPs).

Both parties, in their tariff revision petition has prayed Nepra to:

(i) accept the application;

(ii) revise indexation mechanism of the Operation and Maintenance Component of the tariff as agreed between the applicants in clause 2.2 of the Application of Acceptance (AA) and;

(iii) revise indexation of insurance component of the tariff as agreed clause 2.2(b) of the AA;

(iv) adjust the Foreign Component of RoE and RoEDC of the tariff as agreed between the applicants in clause 2.2@ of the AA;

(v) revise the existing mechanism of “Take or Pay” to Hybrid Take and Pay“ model, whereby the Company is entitled for 35 per cent of RoE and RoEDC as part of CPP and remaining RoE and RoEDC component is subject to generation beyond 35 per cent of contract capacity as agreed between the Applicants in clause 2.2b) of the AA.

‘Take and pay’ mode: Govt tailors four customised options for 18 IPPs

The power company has requested Nepra to implement the clause 3.2 of the AA which provides that “the revised tariff shall be effective from: (a) the date of notification and (b) withdrawal of respective letters and/or claims and/or proceedings of Nepra against the Company for abnormal profits and appropriate notice that the same stands fully and finally withdrawn and resolved, failing which the past excess adjustments (fuel and O&M) will be set aside.

The regulator has also been requested to approve the tariff adjustment to become effective as provided in clause 3.2 of the AA.

Meanwhile, CPPA-G and 9 baggasse-fired IPPs have also filed joint tariff review petitions in accordance with the revised agreements signed after tough negotiations with the Task Force on Power and subsequent approval of federal cabinet.

The Nepra has informed all stakeholders, interested/affected persons and the general public that it has admitted the joint applications for reduction in tariff components filed by Central Power Purchasing Agency (Guarantee) Limited and following Independent Power Producers (IPPs) established under frame work for power Co-generation policy of Government:

(i) Chiniot Power Ltd;

(ii)JDW Sugar Mills Ltd Unit-II;

(iii)JDW Sugar Mills Ltd Unit-III;

(iv) Al-Moiz Industries Ltd; (v) Chanar Energy Ltd;

(vi)Thal Industries Corporation Ltd;

(vii)Hamza Sugar Mills Ltd;

(viii)RYK Mills Ltd and;

(ix) Shahtaj Sugar Mills Ltd.

Salient features of the applications are as follows;

(i) revision in Fuel Cost Component (FCC) of the tariff;

(ii) reduction in Working Capital Component by 50 per cent;

(iii)fixation of Return on Equity (“RoE”) and Return on Equity during Construction (“ROEDC”) components to 17 per cent PKR based per annum on Nepra approved equity at CoD calculated at PKR/USD exchange rate of PKR 168/USD with no future USD indexation;

(iv) reduction in reference O&M components by 10 per cent;

(v) revision in O&M indexation mechanism;

(vi) revision of insurance cap to 0.7 percent of the approved EPC cost; and

(vii) allow the company to sell electricity to Bulk Power Consumers (BPCs), as agreed between the applicants in clause 2.1 (i) of the agreement. The authority has decided to conduct hearing in the matter on April 16, 2025.

Copyright Business Recorder, 2025