ISLAMABAD: In a major move to slash electricity costs, the National Electric Power Regulatory Authority (NEPRA) has admitted joint tariff cut applications from the Central Power Purchasing Agency-Guarantee (CPPA-G) and four state-owned power plants. A public hearing on the proposed adjustments is scheduled for April 24, 2025.
The plants include National Power Parks Management Company’s Balloki and Haveli Bahadur Shah facilities, Central Power Generation Company’s 747MW Guddu plant, and Northern Power Generation Company’s Nandipur plant.
The requested revisions seek to reduce capacity payments and overall consumer tariffs. Key proposals include changing the indexation formula for operation and maintenance (O&M) costs, lowering the insurance cap to 0.8–0.9% of the approved EPC cost, and transitioning to a hybrid “take-and-pay” model for Return on Equity (RoE).
Under the proposed model, only 35% of the RoE component would be paid by default. The remainder would be disbursed only if plant output exceeds 35% of contract capacity—encouraging operational efficiency and limiting idle payments.
Story by Israr Rana
