The National Electric Power Regulatory Authority (NEPRA) has approved the import of an additional 100MW of electricity from Iran along with the associated tariff structure.
The regulator also endorsed the tariff for the existing 104MW electricity supply being imported from the neighboring country.
Under the approved arrangement, payments to the Iranian supplier will be made in US dollars and linked to the OPEC crude oil basket price. NEPRA has also permitted a take-or-pay mechanism covering 15 million kilowatt-hours per month for the newly approved 100MW supply.
In its official order, NEPRA approved Amendments No. 07, 08, and 09 related to electricity imports from Iran, submitted by the Central Power Purchasing Agency-Guarantee (CPPA-G).
The authority further instructed CPPA-G to promptly submit the agreement covering the current electricity supply period and ensure that agreements for future contractual periods are filed within the required timelines.
CPPA-G had approached NEPRA on September 12, 2023, requesting approval for the continuation of the existing 104MW supply as well as an additional 100MW import from Iran’s power supplier, TAVANIR. The request also included approval of the revised tariff terms agreed upon through several amendments to the original agreement.
According to the submitted amendments, the tariff for electricity supplied through all interconnections will be calculated using a formula based on US cents per kilowatt-hour, a fixed cost component, and the monthly average price of the OPEC basket crude oil benchmark, set at $115 per barrel.
The revised arrangement states that the delivered electricity tariff will remain within a range of 6.1 to 9.5 US cents per kilowatt-hour.
