NEPRA approves tariff for electricity import from Iran

The National Electric Power Regulatory Authority (NEPRA) has approved tariff with the range of 12.40 Cents/kWh for import of 104 MW electricity and an additional 100 MW from Iran’s state-owned power company, TAVANIR. 

NEPRA decision comes in response to an application filed by the Central Power Purchasing Agency-Guarantee Limited (CPPA-G), following the Economic Coordination Committee’s (ECC) approval in August 2023 to extend and expand the cross-border electricity supply agreement. 

Iranian suppliers will be allowed to pay in US dollars. Tariffs will be linked to the price of OPEC's basket of crude oil. 

A monthly “take-home-pay” clause of 15 million kilowatt-hours for an additional 100 megawatts of electricity was also approved. 

NEPRA approved amendments no. 7, 8 and 9 to the agreement on the supply of electricity from Iran. Central Power Purchasing Agency had filed an application regarding the import of electricity from Iran. 

The CPPA-G had sought approval for extending the tariff of the existing 104 MW supply and securing an additional 100 MW through amendments to the long-standing power purchase agreement with Iran. The agreement, originally signed in 2002, has undergone multiple revisions.

The latest amendments—Nos 7, 8, and 9—outline revised tariff mechanisms, payment terms, and technical arrangements for power transmission. Amendment 7(which has expired) extended tariff terms until December 31, 2024, with payment settlement required within 45 days.