Consumers may get minor electricity relief

NEPRA has completed the hearing on tariff revision requests from seven Independent Power Producers (IPPs). If approved, consumers could receive a relief of 50 paise per unit, leading to an estimated overall saving of Rs920 billion.

NEPRA held a hearing on applications from seven Independent Power Producers (IPPs) under the 2002 Power Policy. These include Nishat Chunian Power, Nishat Power, Narowal Energy, Liberty Power Tech, Engro Powergen Qadirpur, Sapphire Electric Power, and Safe Power. The aim is to lower power generation costs.

Discussions focused on the exchange rate adjustment mechanism, the payment system under the “take or pay” model, and insurance cap regulations. The Central Power Purchasing Agency (CPPA) informed NEPRA that agreements with these IPPs have been finalized. The IPPs have waived loans worth over Rs2000 crore and Rs11 billion in late payment surcharges.

These negotiations could reduce electricity tariffs by 50 paisa per unit. NEPRA has completed the hearing, and a decision will be announced soon.