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.