(1) Application of Shahtaj Sugar Mills Limited for Review of Generation Tariff dated January 02, 2017 Notified Vide SRO No. 453(I)/2017 dated June 07, 2017 before NEPRA in respect of SSML 32 MW Bagasse Based Co-Generation Power Project
NEPRA Petition by Shahtaj Sugar Mills Limited
Shahtaj Sugar Mills Limited (SSML) submitted a petition to the National Electric Power Regulatory Authority (NEPRA) seeking a review of the generation tariff determined on January 2, 2017, for their 32 MW bagasse-based co-generation power project. The petition highlights SSML’s pursuit of a revised tariff in light of subsequent policy and regulatory changes.
Background and Basis for the Petition
SSML, located in Mandi Bahauddin, Punjab, operates under the framework of the Renewable Energy Policy 2006 (RE Policy). The company decided to establish a bagasse-based co-generation power project with a capacity of 32 MW. On November 11, 2016, SSML was granted a generation license (No. IGSPL/72/2016) by NEPRA under Section 15 of the NEPRA Act.
Following this, NEPRA determined the generation tariff on January 2, 2017, under case No. NEPRA/TRF-372/SSML-2016. This tariff was subsequently notified by the Federal Government via SRO 453(D)/2017 dated June 9, 2017. SSML successfully achieved all requisite milestones, including the approval of the Energy Purchase Agreement (EPA) by NEPRA on December 26, 2017.
Issues and Developments
Despite these approvals, the EPA could not be executed due to a decision by the Cabinet Committee on Energy (CCoE) on January 5, 2018, which stated that only projects with signed Implementation Agreements (IA) or EPAs would be implemented. By this time, SSML had already invested 61% of the project cost.
As a result, SSML was compelled to file a writ petition (No. 2994 of 2018) before the Islamabad High Court, which remains pending. During one hearing, the matter was referred to the Federal Minister (Energy) for a decision.
Subsequent Policy and Regulatory Changes
During the pendency of the writ petition, several policy and regulatory developments occurred:
- The Cabinet Committee on Energy (CCoE) issued a decision on February 27, 2019, which was ratified by the Council of Common Interests (CCI) on August 6, 2020.
- SSML’s petition for the review of the generation tariff was based on these developments and the need to align the project with current policy directives.
Submission to NEPRA
On July 10, 2021, Abdul Waheed Qureshi, Resident Director of SSML, submitted the review application to NEPRA. The application was accompanied by:
- A corporate banker’s cheque of PKR 747,776 in favour of NEPRA as the applicable fee.
- A board resolution from SSML.
- An affidavit affirming the accuracy and truthfulness of the submitted information.
Outcome of NEPRA Petition by Shahtaj Sugar Mills Limited
Decision by NEPRA
Following the submission of the review petition by Shahtaj Sugar Mills Limited (SSML), NEPRA reviewed the case and decided to modify the generation tariff for SSML’s 32 MW bagasse-based co-generation power project. The decision was influenced by several regulatory and policy developments and aimed to ensure alignment with the current market conditions and governmental directives.
Key Determinations by NEPRA
- Review and Adjustment of Tariffs: NEPRA decided to review and adjust the previously determined tariffs. This decision was made in light of the Federal Government’s directives and the evolving market conditions. Specifically, NEPRA aimed to ensure that the tariffs were consistent with the current market environment and consumer interests.
- Memorandum of Understanding Compliance: NEPRA’s review took into account the Memorandum of Understanding (MoU) signed between the Central Power Purchasing Agency Guarantee Limited (CPPA-G) and other Independent Power Producers (IPPs), which included provisions for tariff adjustments.
- Policy Considerations: The decision was influenced by the ratification of the Cabinet Committee on Energy’s (CCOE) decision by the Council of Common Interest (CCI) on August 6, 2020, as reflected in the Alternative & Renewable Energy Policy, 2019. This policy dictated that projects with Letters of Intent or Support issued under the RE Policy 2006 would continue to be governed by the CCOE’s decisions and would be allowed to proceed toward achieving their milestones.
- Federal Government’s Decision on Tariff Components: The Federal Government’s decision regarding the reduction of certain tariff components to reflect the current market conditions and the interests of consumers was a crucial factor in NEPRA’s determination.
Documents Relied Upon
NEPRA’s decision was based on several key documents and regulatory guidelines, including:
- Cabinet Committee on Energy (CCOE) Decisions: Particularly the decisions made in case No. CCE-12/04/2019 dated February 27, 2019, and the modification of earlier decisions to allow projects with Letters of Support to proceed.
- Council of Common Interest (CCI) Ratifications: The ratification by CCI on August 6, 2020, which reinforced the CCOE’s decisions.
- Alternative & Renewable Energy Policy, 2019: The updated policy which provided the framework for the continuation and modification of tariffs for renewable energy projects.
- Memorandum of Understanding (MoU) with CPPA-G: The MoU signed between CPPA-G and other IPPs, which included provisions for the adjustment of tariffs.
- Federal Government’s Policy and Directives: Including the decision of the Federal Minister (Energy) regarding the reopening of the tariff determination window and recommending a levelized tariff of Rs. 10.72/kWh.
In conclusion, NEPRA’s decision to modify SSML’s generation tariff was a comprehensive response to the changing regulatory landscape and market conditions. It reflected a careful consideration of governmental policies, the interests of consumers, and the specific circumstances of SSML’s project.
Compliance with Regulatory Framework: NEPRA’s decision was grounded in compliance with the policy directives issued by the Federal Government and the Cabinet Committee on Energy (CCOE). The regulatory framework necessitated the adjustment of tariffs to reflect current market conditions and consumer interests, which NEPRA adhered to in its determination.
Consideration of Stakeholder Interests: The decision took into account the interests of multiple stakeholders, including SSML, the government, and consumers. By aligning the tariff with market conditions, NEPRA aimed to balance the sustainability of the project with the affordability for consumers, which is a central aspect of regulatory fairness.
Adherence to Legal and Policy Developments: The reliance on the Memorandum of Understanding (MoU) between CPPA-G and other Independent Power Producers (IPPs), along with the ratification by the Council of Common Interests (CCI), showcases NEPRA’s adherence to recent legal and policy developments. This adherence reinforces the legitimacy of the decision.
Protection of Investments: SSML had already invested a significant portion of the project cost, and the decision to review the tariff ensured that these investments were not rendered futile. This aspect demonstrates NEPRA’s consideration of the financial commitments and potential economic impact on the company.
Procedural Fairness: The procedural fairness of the decision-making process was maintained through the careful evaluation of all submitted documents and adherence to established protocols. The fact that SSML’s application was considered in light of new policy changes reflects a responsive and dynamic regulatory approach.
Consumer and Market Impact: By modifying the tariffs to align with market realities, NEPRA ensured that the decision was not only fair to SSML but also to the end consumers, who would benefit from tariffs reflective of the actual economic environment. This balancing act is crucial in maintaining regulatory fairness.
Conclusion: In conclusion, NEPRA’s decision appears to be fair and well-founded. It took into account the necessary regulatory, economic, and stakeholder considerations while adhering to the latest policy directives. By ensuring a balanced approach that protects investments, considers consumer interests, and aligns with current market conditions, the decision underscores NEPRA’s role as a fair and equitable regulatory authority.
(2) Petition for Tariff Modification filed by Pakhtunkhwa Energy Development Organization (PEDO) for its 36.6 MW Daral Khwar Hydropower Project located at Swat, Khyber Pakhtunkhwa Province
Overview of the NEPRA Petition
The Pakhtunkhwa Energy Development Organization (PEDO) filed a petition with the National Electric Power Regulatory Authority (NEPRA) seeking modification of the tariff for its 36.6 MW Daral Khwar Hydropower Project. The project, located in Swat, Khyber Pakhtunkhwa, has been operational since February 2019, contributing electricity to the national grid. However, PEDO requested NEPRA to modify the tariff due to certain operational and regulatory circumstances.
Grounds for Tariff Modification
PEDO’s request for tariff modification was based on several key grounds:
- Pre-COD Sale of Electricity: The project had been injecting electricity into the national grid even before achieving the Commercial Operation Date (COD) due to delays in installing essential equipment caused by the COVID-19 pandemic. This included a total injection of 265,520,530 kWh into the national grid under varying conditions of metering.
- Tariff Basis Adjustment: PEDO sought a change from a “Take or Pay” basis to a “Take and Pay” basis, which would reflect more accurately the operational realities and financial needs of the project.
- Debt Term Adjustment: The organization requested an extension of the debt repayment term from 20 years to 30 years to ensure the financial sustainability of the project over a longer period.
Regulatory and Legal Framework
The petition was submitted in accordance with:
- Section 31 of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997.
- NEPRA (Tariff Standards and Procedure) Rules, 1998.
- NEPRA (Review Procedure) Regulations, 2009.
The modification sought aimed to align the project’s financial model with current economic conditions and to address unforeseen delays and operational hurdles.
NEPRA’s Decision
Upon reviewing the petition, NEPRA took the following decisions:
- Tariff Adjustment: NEPRA acknowledged the operational challenges faced by the project due to the pandemic and allowed for a modification in the tariff to accommodate the electricity supplied to the national grid pre-COD.
- Operational Flexibility: The change from a “Take or Pay” to a “Take and Pay” basis was approved to provide PEDO with greater operational flexibility and financial stability.
- Debt Term Extension: The request to extend the debt repayment term from 20 to 30 years was granted, reflecting NEPRA’s understanding of the long-term financial requirements of the hydropower project.
Documents and Legal Instruments Relied Upon
NEPRA’s decision was based on several critical documents and legal frameworks, including:
- The Energy Purchase Agreement (EPA) between PEDO and the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G).
- NEPRA’s original tariff determination (Decision No. NEPRA/TRF-399/PEDO(DKHP)-2017/346-348, dated January 9, 2018).
- Affidavit by Syed Habib Ullah Shah, Project Director of the Daral Khwar Hydropower Project, affirming the accuracy and truthfulness of the petition.
- Letters and communications between PEDO and NEPRA detailing the operational challenges and financial implications of the pandemic.
Conclusion
The modification of the tariff for the Daral Khwar Hydropower Project by NEPRA reflects a pragmatic approach to regulatory challenges, balancing the financial sustainability of the project with the need to ensure continued supply of renewable energy to the national grid. This decision underscores NEPRA’s role in adapting regulatory frameworks to meet evolving economic and operational realities.
(3) CPPA-G Petition for the Determination of Market Operation Fee for the Financial Year 2020-21
The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) submitted a petition to the National Electric Power Regulatory Authority (NEPRA) seeking the determination of the Market Operation Fee (MOF) for the financial year 2020-21. The petition aimed to secure funding necessary for CPPA-G to carry out its role as the Market Operator, facilitating the transition of Pakistan’s power market to a Competitive Trading Bilateral Contract Market (CTBCM).
Key Grounds and Facts Forming the Basis of the Petition
- Revenue Requirements: CPPA-G outlined its revenue requirements, including general establishment costs, administrative costs, insurance, financial charges, repair and maintenance, and capital expenses. The total requested revenue requirement for FY 2020-21 amounted to PKR 1,016 million, up from PKR 937 million in the previous year.
- Market Operator Functions: The petition highlighted the need for CPPA-G to continue its functions as a Market Operator, which includes activities related to the development and implementation of a competitive electricity market, in line with directives from the Economic Coordination Committee (ECC) and the approved Market Rules 2015.
- Restructuring for Market Operation: CPPA-G detailed its restructuring efforts to bifurcate its functions into two separate entities: the Market Operator (MO) and the Special Purpose Trader (SPT). This restructuring was divided into several phases, including high-level organizational design, detailed design, implementation, functional separation, and legal separation.
NEPRA’s Decision on the Petition
Upon review, NEPRA made the following decisions regarding CPPA-G’s petition for the Market Operation Fee:
- Approval of the Market Operation Fee: NEPRA approved the proposed Market Operation Fee of PKR 3.002 per kW/month for FY 2020-21, enabling CPPA-G to meet its operational and capital expenses.
- Immediate Application: The authority allowed the immediate application of the approved Market Operation Fee under Sub-Rule 7 of Rule 4 of the NEPRA (Tariff Standards and Procedures) Rules, 1998, ensuring that CPPA-G could commence its activities without delay.
Addendum to the Petition
In an addendum dated December 11, 2020, CPPA-G requested an additional budget of PKR 56 million for FY 2020-21. This addendum was necessitated by the need to hire an international consulting firm to support the development and implementation of the competitive electricity market, given the unavailability of technical assistance from the Asian Development Bank (ADB) due to the pandemic.
Key Documents and Legal Instruments Relied Upon
- CPPA-G Board Resolutions: Various board resolutions approving budgets and the hiring of staff and consultancy services were key to the petition. Notably, resolutions from the meetings held on August 24, 2020, and November 4, 2020, provided the necessary approvals for budget allocations and hiring plans.
- National Electric Power Regulatory Authority (NEPRA) Act, 1997: The petition was filed under the regulatory framework provided by the NEPRA Act, which governs the standards and procedures for tariff determination.
- NEPRA (Market Operator Registration, Standards and Procedures) Rules, 2015: These rules provided the regulatory basis for CPPA-G’s operations as the Market Operator and guided the determination of the Market Operation Fee.
- Commercial Code: The Commercial Code, specifically Chapter II, outlines the guidelines for the Market Operation Fee, separating CPPA-G’s costs from the Use of System Charge (UoSC) of the National Transmission and Despatch Company (NTDC).
- Affidavit by Waseem Mukhtar: The CEO of CPPA-G submitted an affidavit affirming the accuracy and truthfulness of the petition and supporting documents.
Conclusion
The approval of CPPA-G’s petition and addendum for the Market Operation Fee by NEPRA underscores the regulatory support for the transition to a competitive electricity market in Pakistan. The decision reflects NEPRA’s commitment to ensuring that CPPA-G is adequately funded to perform its critical functions, thereby facilitating market reforms and promoting efficiency in the power sector.
(4) Federal Government Motion with respect to Recommendation of Consumer End Tariff for XWDISCOs, under Section 31(4) and 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997 (The Act) read with Rule 17 of the NEPRA Tariff (Standards and Procedures) Rules, 1998
The Federal Government of Pakistan, through the Ministry of Energy (Power Division), filed a motion with the National Electric Power Regulatory Authority (NEPRA) requesting the recommendation of consumer end tariffs for Ex-WAPDA Distribution Companies (XWDISCOs). This motion was filed under Section 7, 31(4), and 31(7) of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997 (the “Act”), read with Rule 17 of the NEPRA Tariff (Standards and Procedures) Rules, 1998.
The motion sought to ensure the implementation of a uniform tariff across all XWDISCOs, thereby safeguarding low-end consumers from price escalations while rationalizing and minimizing subsidies.
Key Grounds and Facts Forming the Basis of the Petition
- Uniform Tariff and Consolidated Revenue Requirement: The Federal Government highlighted the necessity of determining a uniform tariff for all XWDISCOs. It argued that NEPRA’s previous tariff determinations for XWDISCOs were done on an individual basis without consolidating the respective revenue requirements, which led to discrepancies in tariff rates. The motion proposed consolidating the revenue requirements of all XWDISCOs to reflect a uniform tariff as mandated under Section 31(4) of the Act.
- National Power Policy, 2013: The motion referenced the National Power Policy, 2013, developed by the Federal Government and approved by the Council of Common Interests (CCI). A core component of this policy is to protect low-end consumers from price increases and to achieve tariff rationalization across industrial, commercial, and bulk consumers, thereby reducing subsidies.
- Economic Coordination Committee (ECC) Decision: The ECC, in its decision dated October 24, 2018 (Case No. ECC-106/22/2018), approved the methodology for arriving at a uniform tariff and its adjustments. This decision was ratified by the Cabinet, forming the basis for the uniform tariff determination by NEPRA on December 19, 2018, for XWDISCOs.
- Targeted Subsidy and Tariff Differential: The motion included a proposal for a targeted tariff differential subsidy of PKR 185 billion to ensure the uniform tariff’s implementation without increasing revenues for the Federal Government. This subsidy aimed to protect low-end consumers from price escalation and maintain uniform tariffs across different consumer categories and regions.
NEPRA’s Decision
NEPRA reviewed the Federal Government’s motion and made the following decisions:
- Approval of Uniform Tariff: NEPRA approved the uniform tariff for XWDISCOs, consolidating the revenue requirements to reflect a uniform tariff across all distribution companies. This decision was aimed at rationalizing the tariff structure and ensuring consistency in consumer billing.
- Incorporation of Targeted Subsidy: NEPRA accepted the proposal to incorporate the targeted tariff differential subsidy of PKR 185 billion, which was crucial to maintain the uniform tariff without imposing additional financial burdens on the consumers.
- Implementation and Notification: NEPRA recommended the uniform final tariff for notification by the Federal Government, leading to the modification and supersession of existing notified rates, as detailed in various SROs from March 22, 2018, and subsequent modifications in January 2019.
Documents and Legal Instruments Relied Upon
NEPRA’s decision was based on several key documents and legal frameworks, including:
- The Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997: Sections 7, 31(4), and 31(7) of the Act provided the legal basis for the tariff determination process.
- NEPRA Tariff (Standards and Procedures) Rules, 1998: Rule 17 guided the procedures for filing and determining tariff motions.
- National Power Policy, 2013: The policy framework developed by the Federal Government to protect low-end consumers and rationalize tariffs.
- Economic Coordination Committee (ECC) Decisions: The ECC’s decisions on the methodology for arriving at a uniform tariff and its adjustments.
- Affidavit and Supporting Documents: Submitted by the Federal Government to affirm the accuracy and necessity of the proposed tariff adjustments.
Conclusion
The approval of the Federal Government’s motion by NEPRA for a uniform consumer end tariff across XWDISCOs reflects a significant step towards achieving tariff rationalization and protecting low-end consumers from price escalations. This decision underscores NEPRA’s role in ensuring fair and consistent electricity tariffs across Pakistan, aligning with national policy objectives and economic considerations.
(5) Petitions for Revision of Tariff Determinations of Quaid-e- Azam Thermal Power (Pvt.) Ltd for Reduction of Return on Equity (ROE) Component
Quaid-e-Azam Thermal Power (Pvt.) Limited (QATPL), a wholly owned subsidiary of the Government of Punjab, submitted a petition to the National Electric Power Regulatory Authority (NEPRA) for the revision of the reference tariff determination for its 1180.130 MW (gross) Re-gasified Liquefied Natural Gas (RLNG) based power project at Bhikki, Sheikhupura. This petition was pursuant to the decision of the Federal Government to reduce the Return on Equity (ROE) for government-owned power projects from 16% Internal Rate of Return (IRR) with dollar indexation to 12% IRR with dollar indexation.
Key Grounds and Facts Forming the Basis of the Petition
- Reduction of ROE: The Federal Government, through the Cabinet Committee on Energy (CCOE), decided to reduce the ROE of government-owned RLNG Independent Power Producers (IPPs) to 12% IRR with dollar indexation. This decision was ratified by the Cabinet and communicated to QATPL via the Ministry of Energy (Power Division) on October 6, 2020.
- Historical Tariff Petitions: QATPL initially filed a cost-plus reference generation tariff petition on February 15, 2016, which NEPRA approved on April 14, 2016. Subsequently, a modification petition was filed on September 19, 2018, and NEPRA decided on this on January 27, 2020. After achieving the Commercial Operation Date (COD) on May 20, 2018, QATPL filed a tariff true-up petition for a one-time adjustment of the reference tariff.
- Revised Tariff Components: The revised tariff petition included new tariff tables reflecting the reduced ROE. The specific adjustments were:
- ROE component for RLNG reduced from Rs. 0.4481/kWh to Rs. 0.3592/kWh.
- ROE component for High-Speed Diesel (HSD) reduced from Rs. 0.4984/kWh to Rs. 0.3995/kWh.
- Overall capacity charges and total tariffs were adjusted accordingly to reflect the reduced ROE.
NEPRA’s Decision on the Petition
NEPRA reviewed the petition and made the following determinations:
- Approval of Revised Tariff: NEPRA approved the revised reference tariff incorporating the reduced ROE of 12% IRR with dollar indexation, effective from the date of the Federal Government’s decision (October 6, 2020).
- Continuation of Existing Components: All other components of the tariff table from the original determination dated April 14, 2016, and the modification decision dated January 27, 2020, remained unchanged.
Documents and Legal Instruments Relied Upon
- Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997: The petition was filed under the provisions of the NEPRA Act, which governs the regulatory framework for the electric power sector in Pakistan.
- NEPRA Tariff (Standards and Procedures) Rules, 1998: These rules provided the procedural basis for filing and determining tariff petitions.
- Cabinet Committee on Energy (CCOE) Decisions: The decision to reduce the ROE was based on the CCOE meeting held on August 27, 2020, and ratified by the Cabinet on September 8, 2020.
- Board Resolutions and Affidavits: The petition included certified true copies of resolutions passed by QATPL’s Board of Directors authorising the reduction in ROE and the filing of the revised tariff petition. An affidavit by Akhtar Hussain Mayo, CEO of QATPL, affirmed the accuracy and truthfulness of the petition contents.
- Ministry of Energy (Power Division) Correspondence: Official communications from the Ministry of Energy conveyed the Federal Government’s decision and directed QATPL to approach NEPRA for the revision of the ROE component in the tariff determination.
Conclusion
NEPRA’s approval of the revised reference tariff for QATPL’s RLNG-based power project aligns with the Federal Government’s directive to rationalize the ROE for government-owned power projects. This decision ensures the financial viability of the project while adhering to national policy changes, reflecting NEPRA’s role in maintaining a balanced regulatory environment.
(6) Petitions for Revision of Tariff Determinations of Punjab Thermal Power (Pvt.) Ltd for Reducation of Return on Equity (ROE) Component
Punjab Thermal Power (Pvt.) Limited (PTPL), wholly owned by the Government of Punjab, submitted a petition to the National Electric Power Regulatory Authority (NEPRA) seeking the revision of the tariff determination for its 1263.2 MW RLNG/HSD power project located in District Jhang. This petition, filed on January 12, 2021, was necessitated by a decision of the Federal Government to reduce the Return on Equity (ROE) for government-owned power projects from 15% Internal Rate of Return (IRR) with dollar indexation to 12% IRR with dollar indexation.
Key Grounds and Facts Forming the Basis of the Petition
- Reduction of ROE: The Federal Government, through the Ministry of Energy (Power Division), conveyed the Cabinet Committee on Energy’s (CCOE) decision to reduce the ROE for government-owned RLNG Independent Power Producers (IPPs) from 15% IRR to 12% IRR with dollar indexation. This decision was ratified by the Cabinet and communicated to PTPL on October 6, 2020.
- Historical Tariff Determinations: PTPL initially filed a cost-plus reference generation tariff petition on September 13, 2017, followed by an addendum on November 10, 2017. NEPRA issued its determination on December 26, 2017, after conducting a public hearing on December 7, 2017. PTPL subsequently filed a motion for review on January 7, 2018, which was decided by NEPRA on June 7, 2018.
- Revised Tariff Components: The revised tariff petition included adjustments to the ROE component in the tariff tables for both RLNG and HSD fuels. The specific adjustments were as follows:
- ROE component for RLNG reduced from Rs. 0.3330/kWh to Rs. 0.2674/kWh.
- ROE component for HSD reduced from Rs. 0.3825/kWh to Rs. 0.3071/kWh.
- Overall capacity charges and total tariffs were adjusted accordingly to reflect the reduced ROE.
NEPRA’s Decision on the Petition
After reviewing the petition, NEPRA made the following determinations:
- Approval of Revised Tariff: NEPRA approved the revised reference tariff incorporating the reduced ROE of 12% IRR with dollar indexation, effective from October 6, 2020, the date the Federal Government’s decision was conveyed to PTPL.
- Continuity of Other Tariff Components: All other components of the tariff table from the original determination dated December 26, 2017, and the review decision dated June 7, 2018, remained unchanged.
Documents and Legal Instruments Relied Upon
NEPRA’s decision was based on several key documents and legal frameworks, including:
- Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997: The petition was filed under the provisions of the NEPRA Act, which governs the regulatory framework for the electric power sector in Pakistan.
- NEPRA Tariff (Standards and Procedures) Rules, 1998: These rules provided the procedural basis for filing and determining tariff petitions.
- Cabinet Committee on Energy (CCOE) Decisions: The CCOE’s decision to reduce the ROE was based on a meeting held on August 27, 2020, and ratified by the Cabinet on September 8, 2020.
- Ministry of Energy (Power Division) Correspondence: Official communications from the Ministry of Energy conveyed the Federal Government’s decision and directed PTPL to approach NEPRA for the revision of the ROE component in the tariff determination.
- Board Resolutions and Affidavits: The petition included certified true copies of resolutions passed by PTPL’s Board of Directors authorising the reduction in ROE and the filing of the revised tariff petition. An affidavit by Akhtar Hussain Mayo, CEO of PTPL, affirmed the accuracy and truthfulness of the petition contents.
Conclusion
NEPRA’s approval of the revised reference tariff for PTPL’s RLNG-based power project aligns with the Federal Government’s directive to rationalize the ROE for government-owned power projects. This decision ensures the financial viability of the project while adhering to national policy changes, reflecting NEPRA’s role in maintaining a balanced regulatory environment.
