ISLAMABAD: The government has formally asked the National Electric Power Regulatory Authority (Nepra) to allow a reduction in power purchase rates from four public sector power plants, entailing about Rs1.58 trillion savings over their remaining life spans under revised agreements.

The request involves a change in terms of contracts from ‘take or pay’ to a ‘hybrid take and pay’ model, a reduction in the rate of return and a cap on dollar indexation at Rs168.

Nepra has scheduled a public hearing on April 24 to deliberate on the proposal submitted jointly by the four government-owned power plants (GPPs) and the Central Power Purchasing Agency (CPPA), a power division entity.

These four power plants, with a cumulative capacity of about 3,700 MW, include two LNG-based projects at Balloki and Haveli Bahadur Shah of around 1,220 MW each (with a combined reported savings of about Rs1.1tr), and the 747 MW Guddu Power Plant and the 510 MW Nandipur Power Project (combined savings of Rs355bn). All four are........

© Dawn Business