Pakistan Power Development Company Limited (PPDCL) requested an increase in electricity rates by more than Rs3 per unit during a public hearing held by the National Electric Power Regulatory Authority (Nepra). The motion covers the Chianwali, Marala, and Pakpattan hydroelectric power projects.
PPDCL noted that the current total fixed charge stands at Rs7.4316 per kilowatt-hour (kWh). The company sought to revise this fixed charge upwards to Rs10.9133, which would amount to a total of Rs371.54 million.
Officials from the Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), and Central Power Purchasing Agency-Guarantee (CPPA-G) opposed any tariff revision for these hydropower plants. PPDCL asked for a reduction in the canal closure factor from 20 to 34 days.
The company also requested a reduction in the annual energy benchmark from 49.995 gigawatt hours to 34.045 GWh. A request was made to adopt an estimated annual generation of 43.067 GWh at a 65.5% plant factor.
Nepra foresaw a remodelling of the 49.995GWh benchmark at a capacity factor of 75.5%. Actual water flows and discharges showed reductions of around 26% compared to the historical flows adopted in the Marala hydroelectric power plant feasibility study.
PPDCL requested lowering the operation insurance cap from 1.35% to 0.8%. The company agreed with the power purchaser to reduce the insurance cap to 0.8% of the EPC cost.
PPDCL also agreed with the power purchaser to switch the tariff structure from take-or-pay to take-and-pay. The upward US dollar indexation of the return on equity (RoE) will be discontinued starting 1 January 2026.
The exchange rate will be fixed at Rs280.55 per US dollar.
