NEPRA Rejects WAPDA’s Request to Increase Tariff for Neelum-Jhelum Hydro Project

National Electric Power Regulatory Authority (NEPRA) has once again refused to allow an increase in the Levelized Tariff of the Neelum Jhelum Hydropower Project to Rs. 10.3 per unit from the provisional Rs. 9.1184 per unit. NEPRA also asked WAPDA to either conduct a Third Party Validation (TPV) of the project or get NOC from the Planning Commission. WAPDA has requested NEPRA to increase the Levelized Tariff for 30 years by Rs. 1.1816 per unit for the Neelum Jhelum Hydropower Project, however, the regulator refused and asked WAPDA to meet the precondition of carrying the Third Party Validation (TPV) of the cost of the project, procurement rule, etc., an official source told ProPakistani. WAPDA was given another option of getting a No Objection Certificate from ECNEC, which had slapped the condition of Third Party Validation (TPV) at the time of approval of the revised PC-I of the project, source said. NEPRA had provisionally allowed WAPDA to charge a provisional tariff of Rs. 9.1184 per unit on a taking and pay basis, which was made effective from October 17, 2019. WAPDA had approached NEPRA for the revision of the Levelized Tariff to Rs. 10.30 per unit for 30 years. Earlier on June 26, 2021, NEPRA conducted a hearing on the tariff petition of NJHPC and made it clear that it would not now allow any adjustment tariff until the NJHP management gets Third Party Validation done or seeks exemption of this condition. As per the regulator, the provisional tariff shall be subject to adjustment if the seller either gets a waiver of the requirement of TPV by ECNEC/relevant agency or conducts the TPV.