Nepra approves Rs1.5/unit raise in power tariff

KARACHI: The National Electric Power Regulatory Authority (Nepra) has approved Rs1.595/kWh (unit) tariff for the delivery of electricity at Annex-I of Shishi hydropower project of Pakhtunkhwa Energy Development Organization.

The authority approved the price of Rs1.595/kWh against the requested tariff of Rs4.723/kWh by PEDO, along with the approved cost of Rs245.905 million EPC, non-EFC cost of Rs23.401 million, including land acquisition cost of Rs6.779 million and owner administration of Rs16.622 million.

The 1.875MW project is located at Darosh, Chitral executed by the Pakhtunkhwa Energy Development Organization, funded through an annual development programme of the government of Khyber-Pakhtunkhwa Power Department, with the total project cost of Rs330.720 million.

The main objective of the project was to install three hydroelectric turbo generating sets of 625KW to meet the electricity demand of the lower Chitral area. The electricity generated is being provided to the public of Darosh Town, as well as other surrounding villages.

The project was originally approved by the Provincial Development Working Party in April 1996. The implementation of the project was scheduled through the provincial annual development plan the same year.

However, due to the financial constraints sufficient allocation/releases could not be made during the period 1996/2000. Consequently, not only the project was delayed but it resulted in enhanced project cost due to abnormal escalation of market prices and devaluation of the rupee. Now the authority has revised and approved the PC-I of the project.

The Pakhtunkhwa Energy Development Organization signed an agreement on February 14, 2002 effective from December 20, 2001 with the Peshawar Electric Supply Company (Pesco) for the purchase of power from Reshun hydel power station of 33kV Judilasht Chitral sub-station.

The billing rate agreed was Rs1.40/kWh on take and pay basis. As per the agreement, the rate for energy and terms of agreement would be reviewed after every five years mutually by both the parties.

The authority directed the Pakhtunkhwa Energy Development Organization to submit all the documentary evidence of one-time adjustment application, including contracts, invoices and payment evidence to Nepra for assessment and adjustment of cost in case the actual cost based on the verified invoices and documents works out to be lower than the approved numbers.