Nepra admits KE's generation tariff plea for its six power plants

The K-Electric submitted a tariff petition to the National Electric Power Regulatory Authority (NEPRA) for its power generation plants for the period starting July 1, 2023.

The power regulatory authority admitted the petition for KE's generation segment, which includes six thermal power plants.

Through this petition, the KE has proposed a tariff for remaining life of generation plants with structure in line with IPPs where expenditures are allowed through fixed and variable O&M. This will help to have visibility and align the tariff structure with CTBCM requirement and industry practice.

Currently, the power regulator has issued a notice for stakeholders’ comments on the KE’s generation tariff petition. It is expected a hearing will be conducted after which the regulator will issue its decision.

Since being privatised in 2005, the KE has invested over Rs400 billion across its value chain, including Rs203.9 billion in the generation segment. With the help of targeted investments, the KE was able to greatly improve the reliability, availability, and capacity of its generation fleet.

As a result, KE’s generation fleet efficiency has increased from 30% in 2005 to nearly 44%. Since FY 2016, KE’s generation fleet reliability has increased from 96% to 99.5%, whereas fleet availability has increased from 81% to 91%, generation capacity increased from 1,875 MW to 2,817 MW, including the addition of 900 MW BQPS-III.