ISLAMABAD: The federal government is all set to inform first interim tariff for re-gasified pure fuel (RLNG) based mostly energy undertaking in Punjab at Rs6.36 (6.06 cents) per unit.
That is down virtually fifty eight per cent compared with upfront tariff cleared by the facility regulator a yr in the past for RLNG-based mostly tasks.
Nationwide Electrical Energy Regulatory Authority (Nepra) had authorised on Feb 22 an interim tariff for RLNG-based mostly 1,156MW Bhikki Energy Undertaking.
A spokesman for the Ministry of Water and Energy Zafaryab Khan confirmed that the competent authority had accredited the tariff notification for RLNG-based mostly Bhikki Energy Venture. “It’s the bottom tariff thus far and is all set to be notified,” he stated explaining that tariff notification had been despatched to the regulation ministry for vetting.
In its willpower, Nepra famous that because the actual timing of cost of EPC (engineering, procurement and development) contractor isn’t recognized at this level of time, subsequently, an adjustment for related overseas foreign money fluctuation for $424.02 million of the EPC portion of cost in overseas foreign money shall be made towards the reference trade fee of Rs105 per greenback on the idea of precise cost.
Nepra had sanctioned 30-yr levellised tariff on RLNG at Rs6.36 per unit. It additionally accredited the excessive velocity diesel (HSD) as various gasoline for a similar plant and set its tariff at Rs10.forty five per unit (9.ninety five cents).
The venture is being carried out by the Punjab authorities beneath its Quaid-i-Azam Thermal Energy Firm and focused the plant to enter business operations by December 2017. Last tariff can be accredited on completion of the challenge on the idea of precise prices and different elements prevailing on the time, Nepra stated.
An influence ministry official stated the plant availability had been taken at 92pc and can be accomplished in 27 months and stay useful for 30 years underneath this tariff.
Nepra had carried out a public listening to for the challenge tariff on Feb 9 which was strongly opposed by the Sindh authorities saying RLNG based mostly tasks couldn’t be taken in hand with out approval of the Council of Widespread Curiosity (CCI) as a result of it concerned provincial issues beneath the constitutions.
About two months in the past, the regulator had withdrawn upfront tariff for 3 RLNG-fired energy crops (all to be based mostly in Punjab) saying the benchmarks offered by the Personal Energy and Infrastructure Board (PPIB) for upfront tariff a few yr in the past had drastically modified.
This had come following Prime Minister Nawaz Sharif’s open criticism of Nepra on the basis stone-laying ceremony of the Bhikki venture for approving larger upfront tariffs. He had stated the federal government was capable of safe large monetary financial savings by holding aggressive bidding.
The authority on a petition filed by the PPIB decided upfront tariff for RLNG-based mostly new energy tasks and introduced a tariff for 1,200MW RLNG-based mostly venture at Rs15 per unit on April three, 2015.
Nevertheless, the ministry didn’t notify this upfront tariff and as an alternative challenged it earlier than Nepra. Quaid-i-Azam Thermal Energy (Pvt) Ltd (QATPPL), an entirely-owned by the Punjab authorities, additionally filed a movement for depart to evaluation towards the stated tariff and sought improve in monetary shut interval, improve in development interval, change in backup gasoline and calculation of RLNG worth and improve in O&M value.
Subsequently, Nepra accepted gasoline value element, operation and upkeep prices, return on fairness and debt servicing however didn’t disclose the undertaking value or last EPC value. The federal government advised the regulator that because the tasks have been being arrange beneath Nepra’s upfront tariff, subsequently, EPC and different tasks prices weren’t related underneath Nepra’s upfront tariff regime. “In case we go for the fee route it will convert the tariff regime from an upfront tariff to a feed-in (value-plus) tariff regime.”
Sources stated the EPC contract of the challenge has been awarded to M/s Harbin Electrical Worldwide Firm of China at a complete value of $539.26 million together with each offshore and onshore EPC prices. Official sources stated the EPC contractor shall set up probably the most environment friendly H-collection fuel generators on the plant manufactured and assured by the Common Electrical of USA. The SNGPL shall be the provider of 200mmcfd of fuel RLNG to the Bhikki Challenge.
The electrical energy produced from the undertaking shall be bought underneath an influence buy settlement to CPPA and all obligations of the CPPA shall even be coated by a sovereign assure.
Revealed in Daybreak, April twenty third, 2016
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