Govt-owned power plants request tariff reduction
Four government owned power plants have also filed applications with the power regulator for reduction in tariff components.
The National Electric Power Regulatory Authority (Nepra) is scheduled to hear these applications filed through the Central Power Purchasing Agency-Guarantee (CPPA-G) on April 24.
In a notice published in newspapers, Nepra informed all stakeholders, interested or affected persons and the general public that it has admitted the joint applications filed by the CPPA-G for reduction in tariff components:
The power plants that have filed the applications are the National Power Parks Management Company (Balloki); the National Power Parks Management Company (Haveli Bahadur Shah); the Central Power Generation Company Limited and the Northern Power Generation Company Limited (Nandipur).
The power companies have requested a revision in the O&M indexation mechanism.
The O&M indexation mechanism refers to the method used to adjust the operation and maintenance costs of a project or service over time, typically in long-term contracts like those in the energy sectors. The goal is to ensure that the service provider is compensated fairly despite inflation.
The companies have also requested an insurance cap to 0.80%/0.90% of the approved engineering, procurement and construction (EPC) cost. This means that The cost of insuring the project cannot exceed 0.80% or 0.90% of the total approved EPC contract value.
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