Thursday, July 4, 2013

Butwal Power Company (BPC) proposes increment in electricity tariff.

Butwal Power Company has sent a proposal to the Tariff Fixation Commission seeking its approval for increasing electricity tariff in five districts in the western region where the company has been supplying electricity through its own power transmission lines.

Nepal Electricity Authority (NEA) has already proposed a 20 percent increment in the electricity tariff.

BPC has been distributing electricity in western districts of Pyuthan, Arghakhanchi, Rolpa, Syangja and Palpa directly from its transmission lines and has been selling the surplus electricity to the NEA.

BPC supplies 55 lakh unit electricity from its 12.5 MW Jhimruk Hydropower Project and 30 lakh unit electricity from 5.1 MW Andhikhola Hydropower Project to the NEA. BPC has already started the work to increase the 5.1 MW Andhikhola to 9.4 MW by spending Rs 1arba 40 crore.

The government had sold BPC to Shangrila Energy, promoted by Padma Jyoti, Pradeep Kumar Shrestha and Vijay Bahadur Shrestha, for Rs 80 crore.  At present, Shangrila has 68.94 percent stake in BPC, while the general public has 10 percent, government 9.9 percent, Intercast Nepal 6 percent United Mission to Nepal 2.79 percent and BPC employees and NEA’s 1 percent each.

The company has been providing dividends to its shareholders each year since it went into the private hands. The private operator took the company on a 50 years lease of which 20 years has already lapsed.

BPC is also building 37.5 MW Kabeli A project and 30 MW Nyadi Hydropower Project. While the PPA for Kabeli has already been signed with NEA, the PPA for Nyadi is in the process to be finalized.

Meanwhile, the PPA between NEA and BPC for Andhikhola and Jhimruk will end in coming Shrawan. BPC had sent a new PPA proposal three months ago, which is being discussed.
Source: Karobar Daily

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