Nepra grants generation licence to former RPP
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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) granted on Monday a licence to the Reshma Power Generation Limited (RPGPL) for setting up a 97MW furnace oil-based power project.
To be located on Manga-Raiwind road four kilometres from Lahore, the former rental power project (RPP) is expected to generate electricity at the rate of about Rs11.3 per unit.
The project was shelved along with more than a dozen RPPs under a decision of the Supreme Court after an audit report of the Asian Development Bank declared that the PPP government’s RPP scheme was economically unaffordable.
Later, the PML-N government renamed the RPPs as short-term independent power producers to utilise their machinery but without paying them capacity charges.
The new policy envisaged that the RPPs would withdraw cases against the government and get clearance from the National Accountability Bureau (NAB).
This entailed permission from the entities concerned for utilisation of the plants and machinery, incorporation of special purpose companies and grant of a fresh generation licence subject to no objection from NAB in case of defunct rental projects.
The investors were also required to unconditionally and irrevocably withdraw claims of arbitration against the government and its entities.
“The RPGPL was granted generation licence by Nepra for its 96.96MW renewable fuel oil-based generation facility, pursuant to Section 15 of the Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997),” said an announcement made by the regulator.
It said that since it believed that the setting up of new power plants was a lengthy process of 18 to 36 months, it was trying to utilise the idle capacity in the country.
“The authority considers that using the idle capacity of the previous RPPs, which are no more in litigation and have been cleared by the NAB, can also be considered for supplying power to the national grid to meet the rising demand in the shorter term,” it said.
The regulator said it was satisfied that the RPGPL had complied with all requirements of rules and regulations.
Published in Dawn, April 21st, 2015
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