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The determination of tariff for
electric power services is one of the primary responsibilities of
NEPRA. NEPRA determines electricity tariffs, keeping in view the
principles of economic efficiency and service of quality, according
to the prescribed tariff standards and procedure rules 1998. In
most cases under long term PPAs, Generation Company’s tariff
is determined on cost plus basis. Distribution companies are given
a multi year performance tariff and transmission company tariff
is determined on annual cost plus basis.
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