ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) has increased upfront tariff for coal power projects up to 20 per cent.

In new tariff the rate of return for projects on imported coal or domestic coal had been offered to the extent of 24.5pc return on equity on different capacity projects.

To attract the investors’ old standards has been relaxed whereas improved returns are offered in the new tariff document, which would be applicable to next 30 years.

The rate of return for imported coal is set as 24.5pc for 220MW plant, 27.2pc for 660MW plant, and 30.65pc for Thar coal. The plants on local coal would get a return of 26.5pc for 220MW, 29.5pc on 660 and 1,100MW plants.

Nepra has reduced efficiency standards for 200MW power projects to 37pc. The efficiency standard for 600MW power projects has also been reduced to 39pc while efficiency for 1,000-1,100MW plants has been reduced to 40pc.

NEPRA has also issued adjustment in Karachi Electric fuel price and power purchase cost variation for quarter ended March 2014. The overall increase in KE tariff for quarter March 2014 is 138.129 ps/kwh. 124.420 are the required adjustment whereas un-recovered cost was 33.157 ps/kwh subtracted by un-recovered cost of previous quarter October to December 19.448 ps/kwh.