ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday hinted at approving the tariff of two PV solar projects of K-Electric as the power utility assured revision of its financial assumptions in accordance with current financial projections instead of those shared at the time of bid evaluation of proposals.
The Authority conducted two separate public hearings on Auction Evaluation Report (AER) for development of 120 MW Solar PV Project at Deh Halkan and 150 MW Solar PV Project at Deh Metha Gar.
However, the issue of acceptance of single bid for 120 MW solar PV project at Deh Halkan came under scrutiny as this aspect was considered in violation of PPRA Rules. KAPCO’s bids were the lowest in both projects.
150MW renewable energy projects: Nepra concludes hearing of KE’s Bid Evaluation Report
The Nepra Authority comprising, Chairman Waseem Mukhtar conducted the hearing. KE team was represented by CFO, Aamir Ghaziani and Mudassar Zuberi, in addition to its legal team.
Member Law, Amina Ahmed, argued that the power utility company has to give the reasons for accepting bid for the project.
However, KE argued that NEPRA Regulation 12(1)(i) of NEPPR 2022 provides the following: (i) “the competitive auction will have at least two qualified bidders, where any bidder shall not have commercial interest in any of the other bidders: provided that in special circumstances and exigency, subject to approval of the Authority, the Independent Auction Administrator or supplier of last resort conducting the competitive auction, as the case may be, may accept the bid of a single qualified bidder, if the said bid does not exceed the benchmark tariff; and (ii) Regulation 12(1) requires at least two qualified bidders for a competitive auction, but the proviso entitles KE to accept a single bid in case of special circumstances.
KE stated that regulations mention that acceptance of single bid will be subject to approval of the Authority.
During the hearing it was revealed by the KE officials that Deh Halkani and Deh Mehta would bring savings of over Rs 86 billion accumulatively in next 25 years. Both the projects received lowest bid from KAPCO with Rs 9.83 per unit and Rs 10.61 per unit, respectively.
According to the power utility company, it wrote a letter to NEPRA on October 9 2024 for clarification of financial bid opening in the absence of a benchmark tariff. Nepra responded on 20th November 2024, subsequent to which KE proceeded with financial bid opening.
Copyright Business Recorder, 2025
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