ISLAMABAD: In a majority vote, the National Electric Power Regulatory Authority (Nepra) has granted K-Electric a 14 per cent dollar-indexed return on equity (ROE) for all its generation plants under a multi-year tariff spanning seven years, ending in 2030. The decision has faced strong opposition from the regulator’s member tariff who labeled it unfair to consumers.

In its determination released on Tuesday regarding K-Electric’s petition filed two years ago, Nepra approved the tariff on a ‘take-or-pay’ basis for KE power plants using various fuels, including high-speed diesel (HSD), for the control period of seven years or the remaining useful life of the plants, whichever is shorter — except for the latest BQPS-III, which will have an 11-year period. Notably, the useful life of Unit-I and Unit-II of BQPS has already expired, while Unit-III has two years remaining.

On whether to classify KE plants as must-run for economic merit order under ‘take-or-pay’ agreements, the regulator decided against allowing ‘take-or-pay’ for RLNG under current arrangements, but permitted it for other plants.

It approved a fuel cost component ranging from Rs43.3356 to Rs50.7461 per unit for HSD in combined cycle operations, Rs20.6731 to Rs41.7506 per unit for RLNG-based........

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