Islamabad:
Four electrical plants owned by the government have also submitted applications to the Energy Regulator for the reduction of tariff components.
The National Electric Power Regulation (NEPRA) Authority is scheduled to listen to these applications submitted through the guarantee of the Central Energy Purchase Agency (CPPA-G) on April 24.
In a notice published in the newspapers, Nepra informed all interested parties, interested or affected persons and the general public who has admitted the joint requests submitted by the CPPA-G for the reduction of the tariff components:
The electrical plants that requests have submitted are the National Power Parks Management Company (Balloki); the National Power Parks Management Company (Haveli Bahadur Shah); The Central Power Generation Company Limited and Northern Power Generation Company Limited (Nandipur).
Electrical companies have requested a review in the O&M indexing mechanism.
The O&M indexation mechanism refers to the method used to adjust the operating and maintenance costs of a project or service over time, usually in long -term contracts such as energy sectors. The objective is to ensure that the service provider is fairly compensated despite inflation.
Companies have also requested an insurance limit at 0.80%/0.90% of the approved cost of engineering, acquisition and construction (EPC). This means that the cost of ensuring the project cannot exceed 0.80% or 0.90% of the total value of the EPC contract approved by the total.
