Consumers may get 50/unit relief: NEPRA

The National Electric Power Regulatory Authority (NEPRA) has concluded its hearing regarding tariff revision requests from seven Independent Power Producers (IPPs).

If the proposed changes are approved, consumers could see a reduction of 50 paisa per unit, resulting in an overall estimated saving of Rs 920 billion.

The hearing focused on requests made by seven IPPs operating under the 2002 power policy, including Nishat Chunian Power, Nishat Power, Narowal Energy Limited, Liberty Power Tech Limited, Engro Powergen Qadirpur Limited, Sapphire Electric Power Limited, and Saif Power Limited. These requests were aimed at lowering power generation costs.

During the hearing, several key issues were discussed, including the exchange rate adjustment mechanism, the payment system under the “Take or Pay” model, and regulations on insurance caps.

The Central Power Purchasing Agency (CPPA) confirmed that agreements with these IPPs had been finalized, with the IPPs waiving over Rs. 11 billion in late payment surcharges. This negotiation has paved the way for a potential reduction in electricity tariffs by 50 paisa per unit.

NEPRA has completed the hearing and will announce its decision in due course.