Nepra refuses to pass burden of Rs24 bn to consumers

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has rejected the government plea for passing the huge burden of Rs24 billion to electricity consumers. The government had pleaded that Rs24 billion loss incurred in the wake of delay in the completion of 425 MW Nandipur power plant be included in the tariff.
The regulator while rejecting the plea of the government argued that the said loss can not be passed on to the consumers as the damage incurred because of the inefficiency during the execution of the project, reveals the document available with The News.
However, the regulator approved 30-year tariff of Nandipur power project at Rs11.30 per unit based on furnace oil. Northern Power Generation Company had asked for power tariff based on furnace oil at Rs18.17 per unit and at Rs8.44 based on gas.
The Northern Power Generation Company pleaded for fixing the cost of Nandipur power plant at Rs69.35 billion, but the regulator approved the cost of the project at Rs45.30 billion instead of Rs69.35 billion. The company also desired to shift the burden of Rs80 million to consumers that were used in making a documentary film about the power project and prepared for the occasion of its inauguration by prime Minister. The said amount was also used for advertisements. The regulator argued that these losses did not incur because of consumers, rather they were the result of inefficiency and three-year delay in the completion of the project. As per Nepra Act, the justified cost of the project cannot be part of the tariff.
The top mandarins of the ministry of water and power are quite upset over the less tariff fixed by Nepra and say that the finance and tariff department of Northern Power Generation Company is examining the decision of Nepra. The officials said that the cost of the project could not be recovered on the basis of existing tariff, which is why the company will submit a review petition with Nepra.