ISLAMABAD - The National Electric Power Regulatory Authority (Nepra), in a bid to promote coal based power generation in the country, has approved an attractive upfront tariff for coal based power plants, which is applicable until June 30, 2019.

Official sources told TheNation on Thursday that the regulatory authority (NEPRA), while approving upfront tariff of coal based power plants, has set up to 9.60 cents/unit for imported coal and up to 9.64/unit for local coal to be used in power plants for electricity generation. They said the regulator has approved upfront tariff for 200MW, 600MW and 1,000MW power generation capacity of coal based power projects while tariff for small coal based power plants with power generation capacity ranging between 50MW up to 150MW will be announced later.

A senior official at water and power ministry told this scribe that with approval of upfront tariff of coal-based power plants, it is hoped that soon cheap electricity power generation would start in the country to mitigate power outages that have ballooned out of control. And, with approved pretty upfront tariff, it is also wished that investors would heavily invest in the power sector. Similarly, with promoting coal based power generation in the country through attractive up front tariff, basket rate of electricity and import bill of furnace oil would be reduced to a great level.

 Meanwhile, the National Electric Power Regulatory (NEPRA), after conducting public hearing to determine generation tariff of Chashma Nuclear Power Plant Unit-1 on Thursday reserved its judgment.

Since the Supreme Court had suspended transfer, posting, appointment and termination made by interim government, so recently appointed Justice (Retd) Ahmad Khan Lashari as chairman Nepra has left the office and resigned from the top slot. Due to the absence of a full time Chairman of the regulatory authority, the Nepra’s hearing over a petition filed by Chashma Nuclear Power Plant Unit-1 (CHASHNUP-1) for determination of generation tariff was held under Nepra’s vice chairman, Khawaja Mohammad Naeem here in the regulator’s main office on Thursday.

Sources in water & power ministry also told that during the course of Nepra’s public hearing, officials gave briefing to the regulatory authority over the determination of generation tariff for Chashma Nuclear Power Plant Unit-1. However, the regulator has reserved its judgment, sources added.

A cop of petition filed by CHASHNUP-1 (an establishment of Pakistan Atomic Energy Commission (PAEC) started its production from June 13, 2000) to the Nepra said that the petitioner had proposed a reference tariff, which was intended to remain effective till 2040. The proposed tariff was based on a net capacity of 300mw, annual plant factor of seven per cent and annual generation of 1839.60Gwh.

The CHASHNUP-1 in its petition for the determination of generation tariff also sought from the regulator to set Energy Purchase Price (EPP) at Rs 1.26/kwh with annual revenue requirement of Rs2,320.11million where the proposed fuel cost to stand at Rs1.25/kwh with annual revenue requirement worth Rs2310.91million while IRSA (Indus River System Authority) levy to be set at Rs0.0050/kwh where annual revenue requirement to stand at Rs9.20 million. In this way, total annual Energy Purchase Price (EPP) to stand at Rs1.2612/kwh where annual revenue requirement would stand at Rs2,320.11 million. Similarly, for Capacity Purchase Price (CPP, the CHASHNUP-1 suggested to the regulator to set Rs0.5590/kwh as establishment charges where annual revenue requirement should be Rs1028.34 million and on account of regulatory fees Rs0.0137/kwh should be set with annual revenue requirement of Rs25.23million. For refueling outages head, the CHASHNUP-1 suggested the regulator to set Rs0.4429/kwh with annual revenue requirement of 814.68 million. And, under the head Spares, the CHASHNUP-1 proposed to set Rs0.5404/kwh with annual revenue requirement of Rs994.17 million. While for Engineering Support Services, the CHASHNUP-1 suggested Rs0.7513/kwh with annual revenue requirement of Rs187.21m and Provision for Decommissioning Funds, the CHASHNUP-1 pleaded the regulator to set Rs0.1018/kwh with annual revenue requirement of Rs4,431.69 million.

Similarly, the CHASHNUP-1 requested the authority (NEPRA) to set Rs5.8033kwh with annual revenue requirement of Rs10,676.13 million under the head Non-Escalable Component that includes Plant Depreciation, Provision for Waste Disposal Fund, Depreciation of other assets, Refurbishment & Emergency Preparedness, Financial Charges, Interest during construction (IDC), Return on Equity and ROEDC.