ISLAMABAD   -  National Electric Power Regulatory Authority (Nepra) has reduced the Return On Equity (ROE) of three nuclear power generation plants of 931MW which will result in saving of approximately Rs 2.05 billion annually for next 25-37 years. Nepra, in a landmark decision, has reduced the Return On Equity (ROE) component of three nuclear power generation plants including C-2, C-3 and C-4 and has slashed the tariff by Re. 0.2515 per unit, said a notification issued here by NEPRA.

The Nepra decision regarding Chashma Nuclear Power Plant Unit-2,3 and 4 having a cumulative net capacity of 931MW will result in saving of Rs2.05 billion per year (average Re. 0.2515/unit) for the remaining life of the nuclear power plants i.e. 25-37 years approximately, said the notification.

It is apprised that the above nuclear power generation plants, in line with Cabinet Committee on Energy (CCOE) decision of 27th August 2020, have filed petitions with NEPRA for reduction in their ROE components on account of reduced ROE rate and freezing exchange rate to Rs. 148/dollar.  The Nepra under the prevailing rules and regulations has accordingly admitted the same and conducted a hearing on 13th January, 2021 and subsequently decided yesterday, the 24th of February, 2021 to freeze the exchange rate at Rs.148/dollar and reduce the ROE from 15% to 14.5% for the remaining life of these projects.

As per the Nepra documents license to Chashma Nuclear Power Plant Unit-2 (CHASHNUPPII/C-2) located at Chashma, Tehsil Piplan, district Mianwali was issued in 2011. The rated gross capacity of plant is 340 MW with a minimum 40 years (extendible for period of another 20 years).

Generation Licenses for Chashma Nuclear Power Plant Unit-3 (C-3/CHASHNUPP-3) and Unit-4 (C-4/CHASHNUPP-4) were granted in 2016. The plants are located at Chashma, Tehsil Piplan, district Mianwali. The rated gross capacity of plants is 340 MW each with a minimum 40 years (extendible for period of another 20 years). Meanwhile, a source told The Nation that the federal government has forwarded the matter related to the revised tariff for the IPPs to Nepra. The government had signed agreements with 46 IPPs for the revision of power purchase agreements (PPAs). Nepra will issue new tariff for these IPPs, said the source.