ISLAMABAD, Dec 5: Prime Minister Shaukat Aziz has refused to curtail the role of the National Electric Power Regulatory Authority (Nepra) in the tariff approval of new power projects, it is learnt.

Informed sources told Dawn that the Private Power and Infrastructure Board (PPIB) had submitted a package to the prime minister seeking approval for long-term tariffs of new power projects through the Economic Coordination Committee (ECC) of the cabinet, instead of Nepra.

The prime minister did not agree to the proposal and asked the Ministry of Water and Power and the PPIB to let Nepra perform its regulatory functions without let or hindrance to maintain a balance between the interests of investors and consumers.

The PPIB package was sort of a 'charge-sheet' against Nepra, alleging that it had become an obstacle to attracting investment in the power sector which could cause an acute power shortage in the country after 2007, said an official who attended a meeting presided over by the prime minister on Dec 2.

The PPIB in its presentation said it had received over 60 investment proposals worth $13 billion but the government's 2002 policy for new power projects 'has effectively become redundant' and there was a 'complete roadblock in implementation of new projects in the private sector' owing to a market structure envisioned by Nepra.

The PPIB said Nepra was allowing multi-year tariff only up to year 2009 for new projects while investors wanted long-term tariff and power purchase agreements spread over 15 years, 25 years and 35 years for natural gas, coal and hydro-electric projects, respectively.

Nepra was of the view that multi-year tariffs could be announced for a reasonably foreseeable future and one generation of the country should not pay higher tariffs for a future generation or limitations of current generation should not become a problem for the next generation.