Baggasse-fired, new co-generation power projects: Nepra to modify fuel cost component's indexation

National Electric Power Regulatory Authority (Nepra) has decided to modify the workings and indexation of fuel cost component of baggasse-fired power projects and new co-generation power projects given baggasse upfront tariff, 2013.
According to the regulator, the fuel cost component of the baggasse-based captive power projects as well as the new co-generation projects under Upfront Tariff, 2013 have been worked out and are being indexed based on prices of foreign coal (South African) on annual basis.
The Authority has determined new upfront tariff on 10 November, 2017 for baggasse new co-generation projects. In the determination, the Authority has worked out the fuel cost component using market prices of baggasse and allowed indexation thereon at the rate of 2% upward after every two years.
However, now the Authority has decided to initiate suo-moto proceedings to modify the working and indexation mechanism of fuel cost component of baggasse-based captive power projects and new co-generation power projects awarded upfront tariff, 2013 to provide fair and transparent tariff. A hearing has been scheduled for this purpose on March 15, 2018 at NEPRA Tower, Islamabad.