Sub-Committee on Power in its meeting on Thursday has asked NEPRA to conduct analysis of the year wise details of the accounting profits of Independent Power Plants (IPPs) in ten days’ time and obtain the required information from the IPPs. The Committee asked NEPRA to seek information about profitability of individual IPPs and its comparison with Returns on Profits under tariff.
The meeting was held under the chairmanship of Senator Nauman Wazir Khattak at the NEPRA Office in Islamabad. The Committee was given a briefing on the accounting profits and ROE under tariff by HUBCO and sought information on other IPPs on the same format.
The Committee noted that the objective to do this exercise is to see if all payments and pofits are in accordance with the NEPRA terms and conditions and no overpayments or excessive profits are being made. The Committee is designated to review the issues of high tariff, capacity charges, heat rates and calculation of pay back periods of IPPs.