Centre irked by Punjab delaying lower tariff for LNG plants

The federal government has conveyed its displeasure to the Punjab government over delay in approval process for tariff reduction of its two LNG-based power plants of more than 2,400MW, involving about Rs600bn savings over their remaining useful lives of 18 to 23 years. A senior official told Dawn that Central Power Purchasing Agency (CPPA) — a subsidiary of the power division — had been in contact with Punjab’s energy department for completion of formalities to file tariff reduction applications before the National Electric Power Regulatory Authority (Nepra). He said the CPPA management to the government that the case for approval of revised tariffs with Punjab’s two plants was included in the agenda of the provincial cabinet well before Eidul Fitr. “The CPPA has reported that approval from the Punjab cabinet has not come through as of April 25, despite reminders,” the official said.