Power firm draws flak for seeking tariff hike

Punjab Power Development Company Limited (PPDCL) has faced criticism from other power producers and scrutiny from the regulator after seeking an electricity rate increase of more than Rs3 per unit, according to The Express Tribune. The National Electric Power Regulatory Authority (Nepra) convened a hearing in public to examine PPDCL's petition covering the Chianwali, Marala and Pakpattan hydroelectric projects. Officials from Gepco, Mepco and CPPA-G objected, contending that any change to hydro tariffs would push up consumer costs and encourage other hydropower firms to seek reviews.

PPDCL's figures put the total fixed charge at Rs7.4316 per kilowatt-hour, totalling Rs371.54 million, and the company wants it lifted to Rs10.9133. It also wants the annual energy benchmark cut from 49.995 GWh to 34.045 GWh, citing canal closures longer than initially planned and water flows about 26 per cent below feasibility study levels. Its proposals also include lowering the insurance ceiling from 1.35% to 0.8% of EPC cost, an arrangement agreed with the power purchaser.

Other proposals would shift the tariff model away from take-or-pay toward take-and-pay, index all O&M components to the NCPI, and scrap the upward dollar indexation of return on equity from January 1, 2026. Together, the requests cover payment structure, cost indexation and currency treatment in the tariff.