ISLAMABAD: In a significant development regarding power tariff reductions, four government-owned Independent Power Producers (IPPs) have formally submitted requests to the National Electric Power Regulatory Authority (NEPRA) to revise their existing tariffs.
Collectively, the four IPPs have a generation capacity of 3,700 megawatts.
The applicants include the RLNG-based Haveli Bahadur Shah Power Plant and Balloki Power Plant, each with a capacity of 1,230 MW, the Guddu Thermal Power Plant with 747 MW, and the Nandipur Power Project with 525 MW.
The request primarily seeks a review of the operations and maintenance (O&M) indexation mechanism for these power plants.
Additionally, the IPPs have urged NEPRA to re-evaluate the insurance cap and to consider adjustments related to payments under the ‘take-and-pay’ mechanism.
NEPRA is scheduled to hear the petition on April 24.
Read More: Nine bagasse power plants seek reduction in tariffs
Earlier, Nine bagasse power plants had submitted application to the Nepra for cut in power tariffs.
The power plants have also pleaded to the regulator for review of the fuel costs and also requested for permission to sell the electricity generated by these plants to big consumers.
Bagasse plants have also requested to the regulatory authority for review of the operation and maintenance indexation mechanism and 50 percent reduction in the working capital.
Prime Minister Shehbaz Sharif also announced reduction in electricity prices in a relief to the public.
Addressing an event organised for the announcement, PM Shehbaz revealed that the government has decided to decrease the electricity tariff by Rs 7.41 per unit for domestic consumers.
He also announced a reduction of Rs 7.59 rupees per unit for industries.
PM Shehbaz expressed the confidence that the reduction in electricity prices will trigger economic activities in the country.
“The benefit of the global decrease in oil prices will be passed on to the people in the form of reduced electricity prices,” said the prime minister.
He said that successful negotiations with Independent Power Producers (IPPs) will result in a massive saving of Rs3,696 billion.
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