Nepra seeks views on induction of CPEC security cost in tarrif

Nepra seeks views on induction of CPEC security cost in tarrif

KARACHI: The National Electric Power Regulatory Authority (Nepra) has sought views from the general public and stakeholders over the government's decision to induct security costs of $150,000 for the China-Pakistan Economic Corridor (CPEC) projects in power tariffs.

Nepra has decided to initiate a suo moto review proceeding seeking views from any interested person and stakeholders who desires to participate in the proceedings.

Earlier, the government had decided to recover the cost of security required for upcoming power projects from consumers through monthly bills for the entire 25-30 year life of the projects.

However, Nepra had reportedly serious reservations over the government's decision while the authority has now decided to initiate a suo moto review proceedings in order to consider allowing 1 percent of the Capital Cost net of $ 150,000/- per annum on account of security costs to be distributed annually starting from the construction period till the term of the power purchase agreement in accordance with the decision of the Economic Coordination Committee of the Federal Cabinet (ECC) for power projects falling under the CPEC.

Nepra has advised stakeholders and general public to file comments by 2nd of April 2017 as the Authority, if deemed fit, may permit participation of such person into the proceedings and also may consider the comments in the final determination.

The Nepra has decided to hold a hearing in the subject matter on 4th of April 2017 at Nepra Tower Islamabad.

There are 19 power projects under the CPEC. The coal power projects under CPEC included Port Qasim Electric Power Company (Pvt) Ltd., China Power Hub Generation Company (Pvt) Ltd. (HUBCO), Huaneng Shandong Ruyi (Pakistan) Energy (Pvt) Ltd, Engro Powergen Thar (Pvt) Ltd., Thar Coal Block-I Power Generation Company (Pvt) Ltd., ThalNova Power Thar (Pvt) Ltd., and Thar Energy Ltd. (HUBCO).

Similarly, the wind power projects under CPEC are Sachal Energy Development (Pvt) Ltd., United Energy Pakistan (Pvt) Ltd., Hydro China Dawood Power (Pvt) Ltd., Three Gorges Second Wind Farm (Pvt) Ltd., and Three Gorges Third Wind Farm (Pvt) Ltd.

Likewise, solar power projects to be built under CPEC are Best Green Energy Pakistan Crest Energy Pakistan and Appolo Solar Pakistan.

Hydel power projects of CPEC are Suki Kinari Hydropower Project, Kohala Hydropower Project and Karot Hydropower Project while the transmission line project Matiari to Lahore is also included in CPEC.