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Nepra fixes upfront tariff for coal-based power houses

National Electric Power Regulatory Authority (Nepra), in a bid to cope with the current electric power crisis and get the masses rid of the perpetual increase in power tariff, has fixed the upfront tariff for coal-based power plants that will be installed in future, it is learnt. The upfront tariff will be uniform.

According to a notification, Nepra has fixed the tariff of Rs7.05 per unit for the coal-based power plants that are to be locally financed and Rs8.12 per unit for those which are to be internationally funded.

This development has emerged for the first time in the history. However, the regulator has not determined the tariff for the power plants to be based on Thar coal as it does not know about the quality of Thar coal yet. Nepra will later determine the tariff of power plants to be run on Thar coal when its quality is to be determined.

The notification unveiled that the upfront tariff for imported coal-based power plants will be effective for 30 years. However, the power companies will be able to enforce the uniform tariff for six years and the authority will review the tariff after 6 years.

The uniform tariff will only be extended to those companies which will install the new brand machinery in their power houses. The tariff will be applicable on the projects that have the electricity generation capacity of 600 MW, 400 MW and 200 MW.

The power plants that are to use the imported coal will be exempted of the 2 percent transportation losses. However, the power plants that are to utilise the local coal will be given the relief of exemption of one percent transportation loss.

As per the notification, the capital cost for 200 MW power plant has been fixed at $212.4 million, for 600 MW power house $585 million and for 1000 MW coal based power house the capital cost has been determined at $885 million.

However, the fluctuations in the prices of steel and the electricity related machinery in the plant would be adjusted. The ups and downs in the prices of coal would also be adjusted in the tariff mechanism. After detailed consultation with all stakeholders, the regulator would issue the formal notification to this effect.

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