Nepra plans delinking tariffs with power purchase accord

KARACHI: National Electric Power Regulatory Authority (Nepra) planned to delink tariff awards for electricity producers with the condition of power purchase agreement, a document showed on Thursday.

An official said the proposed exemption for all upcoming power generators seeking upfront tariff from the pre-requisite of the buyer’s consent would lead to a competitive regime.

Presently, producers of wind electricity, hydropower (up to 25 megawatts) and solar, bagasse and thermal energy are required to obtain consent of power purchaser Central Power Purchasing Agency, a distribution company or bulk power consumer for electricity procurement prior to upfront tariff announcement under the Nepra Upfront Tariff (Approval and Procedure) Regulations 2011.

The regulator planned to omit the requirement through an amendment into the regulations.

However, the power producers still need to meet other requirements prior to opt for upfront tariff.

There are needs of a copy of the certificate of incorporation and details of the sponsors of the generation facility, memorandum and articles of association highlighting generation of electricity as one of the businesses of the generation facility, letter of intent/support issued by the relevant agency, a description of the proposed generation facility and its site and generation licence or an application in accordance with the Nepra Licencing (Application and Modification Procedure) Regulations 1999.