Govt to challenge Nepra tariff for Nandipur power plant in court255 views
ISLAMABAD: The government has decided to take Nepra to court over the tariff of Nandipur Power Plant.
The Ministry of Water & Power seeking judicial intervention to jack up the consumer tariff of the Nandipur power project in relevance to the cost of the project.
The power ministry and power companies want to secure Nandipur’s tariff on actual cost seeking Rs. 15.63 per unit tariff, while Nepra has approved the tariff at Rs. 11.64 per unit of the electricity.
The Nepra has refused to accept the government demand of tariff increase and rejected review and reconsideration requests.
The power generation from the plant on this tariff ‘not viable.’
Nepra has rejected the government request to assume the total cost of the 425-525MW Nandipur project at Rs65 billion while determining its tariff. But the regulator has considered the project cost at Rs42bn in a 30-year tariff that averages Rs11.64 per unit.
The power regulator has written time and again that it had allowed all prudent costs in the tariff, and that consumers could not be punished for the omissions or commissions of the project authorities.
An official said there was no precedent to allow the cost of a gas pipeline in the power tariff because the pipeline should be constructed by the gas company, treated as the gas company’s asset and made part of the gas company’s revenue requirement.
ECC approves reduction in price of imported urea
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet here on Monday has approved the reduction in price of imported urea fertilizer and fixed its price at Rs. 1,200 par bag.
The ECC which met here with Federal Minister for Finance Senator Mohammad Ishaq Dar in chair approved the reduction in price of imported urea fertilizer lying with National Fertilizer Marketing Limited (NFML).
The summary of reduction in imported urea price was presented by Ministry of Industries and Production, a statement issued bythe Ministry of Finance said.
The ECC had earlier fixed the price of the imported urea at Rs.1,310 per bag.
The ECC had earlier formed a committee headed by Secretary Industries and Production to propose steps for the enhancement of sales of the imported urea.
The committee in today’s meeting presented its report and suggested measures to boost the sales and recommended reduction in price.
The ECC after detailed deliberations reduced the price to Rs. 1,200 per bag in order to enhance the sales of the commodity to boost agriculture output.
The meeting also accorded approval to the proposal of the Ministry of Finance for the issuance of Sukuk, 2016 and it was informed that as the international rating agencies have improved the ratings of Pakistan, the current issue of the Sukuk is expected to bring in a better yield.
Finance Division also requested the exemption of certain taxes and duties for making the sale of the Sukuk a desirable transaction for the foreign investors, which was approved by the ECC. – APP