Putting forth 12-point charter of demands, Independent Power Producers’ Association Nepal (IPPAN) has announced second phase of protest programme against the government.
Organising a press conference in Kathmandu today, the private power producers also warned that they will hand over keys of all sick hydropower projects to the government, if their demands are not met even after the second-stage of their protest. “We will hand over the key of sick projects to the Minister for Energy, Water Resources and Irrigation on October 18, if our demands are not fulfilled by then,” the IPPAN said, adding that some 25 hydropower projects developed by them are ‘sick’ as they have either failed to service their debts or reeling under financial crisis.
“The demands that we have put forth to the government are for implementation of facilities and pledges that the government and the Nepal Electricity Authority have made,” the coordinator of the sick project coordination committee of IPPAN Surya Prasad Adhikari said, adding that they have not got even those facilities and incentives that the government has provided to the foreign investors.
Independent power producers have launched their agitation in mid-August. In the first stage, they put forth their demands with concerned government agencies and held interaction with authorities to press them for fulfilling their demands. Some of their demands include immediate reimbursement of the subsidy announced for hydropower projects, which have already started commercial production as announced in the budget speech for fiscal year 2014-15, lowering of bank lending rates for hydropower projects to single-digit and 5 per cent for mini hydropower projects, which are in operation, and providing posted rate (Rs 4.8 per unit in wet season and Rs 8.4 per unit in dry season) even for small hydropower projects having capacity below 25 MW.
The IPPAN has also demanded increment in compensation resulting from outage losses due to fault of transmission lines of the Nepal Electricity Authority (NEA). “The NEA provides us a maximum of 5 per cent of outage losses in line with the power purchase agreement,” the IPPAN informed, adding that many small hydropower projects, however, are facing 17 per cent to 21 per cent outage losses out of total generation due to problem in transmission lines of the NEA.
“There cannot be construction of projects until there is transmission line,” according to the executive director of Aarati Power Company Ltd – the developer of Upper Irkhuwa Hydropower Project (14.5MW) – Prakash Dulal. “But, the NEA penalises power producers, if they do not supply energy in line with the agreement.”
Likewise, chief executive of Khanikhola Hydropower Company Bijay Man Sherchan said that power producers are facing losses due to lack of transmission lines. “We are supplying electricity from 11 kV transmission lines as the NEA has not provided 33 kV transmission line,” he said, adding that they have to pay compensation to the NEA, if they fail to supply required amount of energy.
Organising a press conference in Kathmandu today, the private power producers also warned that they will hand over keys of all sick hydropower projects to the government, if their demands are not met even after the second-stage of their protest. “We will hand over the key of sick projects to the Minister for Energy, Water Resources and Irrigation on October 18, if our demands are not fulfilled by then,” the IPPAN said, adding that some 25 hydropower projects developed by them are ‘sick’ as they have either failed to service their debts or reeling under financial crisis.
“The demands that we have put forth to the government are for implementation of facilities and pledges that the government and the Nepal Electricity Authority have made,” the coordinator of the sick project coordination committee of IPPAN Surya Prasad Adhikari said, adding that they have not got even those facilities and incentives that the government has provided to the foreign investors.
Independent power producers have launched their agitation in mid-August. In the first stage, they put forth their demands with concerned government agencies and held interaction with authorities to press them for fulfilling their demands. Some of their demands include immediate reimbursement of the subsidy announced for hydropower projects, which have already started commercial production as announced in the budget speech for fiscal year 2014-15, lowering of bank lending rates for hydropower projects to single-digit and 5 per cent for mini hydropower projects, which are in operation, and providing posted rate (Rs 4.8 per unit in wet season and Rs 8.4 per unit in dry season) even for small hydropower projects having capacity below 25 MW.
The IPPAN has also demanded increment in compensation resulting from outage losses due to fault of transmission lines of the Nepal Electricity Authority (NEA). “The NEA provides us a maximum of 5 per cent of outage losses in line with the power purchase agreement,” the IPPAN informed, adding that many small hydropower projects, however, are facing 17 per cent to 21 per cent outage losses out of total generation due to problem in transmission lines of the NEA.
“There cannot be construction of projects until there is transmission line,” according to the executive director of Aarati Power Company Ltd – the developer of Upper Irkhuwa Hydropower Project (14.5MW) – Prakash Dulal. “But, the NEA penalises power producers, if they do not supply energy in line with the agreement.”
Likewise, chief executive of Khanikhola Hydropower Company Bijay Man Sherchan said that power producers are facing losses due to lack of transmission lines. “We are supplying electricity from 11 kV transmission lines as the NEA has not provided 33 kV transmission line,” he said, adding that they have to pay compensation to the NEA, if they fail to supply required amount of energy.
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