Government to purchase power from sugar mills at high tariff

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has turned down a plea of the federal government, which will be bound to purchase electricity from sugar mills at higher rates despite production of cheaper power by plants based on liquefied natural gas (LNG), coal and other resources.

After Nepra’s decision, 12 influential sugar mill owners will receive additional earnings of Rs48 billion through the production and sale of bagasse-based electricity over the next 10 years.

Nepra set an old tariff for the bagasse-based power plants with 390-megawatt generation capacity at Rs12.09 per unit despite determining a new tariff. The new tariff has been set at Rs8.86 per unit, which does not apply in this case.

Published in The Express Tribune, 19th April, 2018