Islamabad: The Neelum-Jhelum Hydropower Company has filed for a petition at the National Electric Power Regulatory Authority (Nepra) asking for PKR 13.24 per unit reference tariff, according to a news source. The reference tariff in this is PKR 14.59 for the first 20 years, which will then drop to PKR 5.10 for the remaining 30 years.
The total cost of the project is USD 4.825 billion and it comprises of four units. Two of these units of 242 MW have already been tested. Initially, the construction contract of the project was awarded at a cost of PKR 90.9 billion in 2007, and was expected to complete by October 2015 but has been delayed because of technical issues.
There are various facets of this project which need to be addressed adequately. The regulator and Nepra have to examine if the project’s tariff should still be allowed on a ‘take or pay basis’, and how water would be directed to this dam now that Kishanganga has been constructed in Indian Occupied Kashmir.
Earlier last month, the Executive Committee of the National Economic Council (Ecnec) had approved the fourth revised PC-1 of the project at an updated cost of PR 506.808 billion. The cost of this project has been increased four times since 2002.
