ISLAMABAD: Korea-South East Power Company (KOEN) has called on the National Electric Power Regulatory Authority (Nepra) to determine tariffs for its hydropower projects under the Power Generation Policy 2015. KOEN emphasized that the Government of Pakistan (GoP) and its regulatory bodies must maintain the integrity of their policies to attract and retain foreign investment.
During a recent Senate Standing Committee on Power meeting, KOEN sought government support for its projects. However, Minister for Power Sardar Awais Leghari and Nepra Chairman Chaudhry Waseem Mukhtar clarified that no new projects would be added to the Integrated Generation Capacity Expansion Plan (IGCEP), as future allocations have already been made. They noted that KOEN’s projects could be considered if they align with the revised IGCEP’s least cost methodology.
KOEN raised concerns over Nepra’s use of the Levelized Cost of Electricity (LCoE) for tariff comparison, arguing that it overlooks critical financial factors like interest rates, equity redemption, and Return on Equity During Construction (ROEDC). The company also pointed out discrepancies in the IGCEP’s cost evaluations and delays in tariff determinations, which have exceeded 14.5 months.
KOEN stressed that inconsistent treatment of its hydropower projects could damage investor confidence and negatively impact Foreign Direct Investment (FDI) from South Korea. The company called on Nepra to adhere to its tariff determination rules and ensure policy transparency and fairness for all investors.
Story by Mushtaq Ghumman
