Nepra cuts equity return of 12 power plants to save Rs182bn

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Islamabad

The National Electric Power Regulatory Authority (NEPRA) has reduced the return on equity (ROE) and return on equity during construction (ROEDC) components of 2 thermal power plants having cumulative net capacity of 2,412 MW.

According to a press statement, the reduction in tariff will result in an estimated saving of Rs182 billion over the remaining life of the projects.

It is apprised that the CPPA-G filed tariff adjustment applications with NEPRA for the reduction in ROE and ROEDC components of twelve thermal power plants.

The CPPA-G requested to revise ROE and ROEDC components on the basis of 17% return and fixed exchange rate of Rs148 per one US dollar without dollar indexation for local equity, whereas, revised ROE and ROEDC components on the basis of 12 percent return with dollar indexation for foreign equity.—TLTP