NEA hikes power purchase rate

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    KATHMANDU: The Nepal Electricity Authority today increased the Power Purchase Agreement (PPA) rate for seven projects which are under construction.

    The board meeting of Nepal Electricity Authority approved the decision of NEA to hike the power purchase rate.

    Those projects getting the increased rate are Lower Modi-1(9.9 MW), Lower Aankhu Khola (8.4 MW), Indrawati Khola (4.5 MW), Bijayapur-1(4.4), Jiri Khola (2.2 MW), Middle Chaku (1.8 MW) and Lower Chaku (1.7 MW).

    The decision was made as per the proposal submitted by the companies developing those projects which have outlined the date of commercial code of production and the payment of loan has been allocated for seven years.

    The new rate approved is Rs 8.4 for winter and Rs 4.8 per unit in summer. “NEA will buy electricity in new rate approved,” NEA officials said.

    NEA had earlier entered into a deal with seven companies at Rs 7.0 per unit in winter and Rs 4 per unit in summer, but the companies demanded to ease their works by increasing PPA rate as the interests for the loans taken to construct the projects from the bank climbed up in the last few years.

    According to the NEA officials, the government will bear the pressure that will be exerted to NEA due to the increment in PPA for the projects.

    “The government is committed to facilitate the private companies and ease their works as there is the need to promote them to produce more energy in stipulated time,” said one of the board members.

    :HIMALAYAN NEWS SERVICE