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Neelum-jhelum Project to Sell Power at RS 9.1 Per Unit

Islamabad: The National Electric Power Regulatory Authority (Nepra) provisionally authorized the highest hydroelectric tariff of Rs 9,118 per kWh.

Read: Faisal Town Phase 2 VS Multi Gardens B17 Phase 2

It permitted Neelum-Jhelum Hydropower Project (NJHP) to continue selling electricity at a temporary pricing of Rs 9,118 per kilowatt-hour on a take-and-pay basis with a must-run condition. This became effective on October 17, 2019 already.

For the building of this project, which cost Rs 428.296 billion, Rs 317.367 billion was borrowed from foreign and domestic sources in order to pay for interest on the debt and principal repayment.

During the hearing, the authority noted that a TPV must be conducted for the project, which has not been done despite the fact that three years have passed since the decision/approval.

Nepra was also provided with copies of the letters that NJHP had sent to key forums such as the Ministry of Water Resources, Ministry of Planning Development and Reforms, and Planning Commission to address the issue of TPV.

Read: Best Housing Societies with Overseas Blocks in Islamabad

According to the Planning Commission, the selection process for the TPV consultant has begun, as reported by the seller.

According to the judgment, Nepra has already reached a conclusion, which is reflected in the November 19, 2018 pricing determinations for the project.

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