- What is Deemed Generation?
- How much power does BKPC generate and sell to NEA?
- What is the issue relating to Short payment by Nepal Electricity Authority?
- Sale of electricity by BKPC to NEA is governed by a PPA entered into between the two parties. Instead of referring to detailed per hour allowable Deemed Generation as provided for in the PPA for payment purpose, which BKPC feels is supported by other references in the agreement, NEA is unilaterally following an estimate of a lesser average monthly output that is in the agreement. BKPC is of the opinion that this has been kept in the Agreement merely to describe the project and not to use as a tool to measure deemed generation. Thus the short pay.
- NEA interprets that BKPC should be allowed to generate only up to 18 MW of energy per turbine, but the PPA clearly describes a detailed method of calculations of the required electricity generation every hour in a particular day of the month in two scenarios in case of 'one unit only delivered' and 'two units delivered'. As both units of BKPC's were delivered on January 24th, 2001, the issue of calculation restricting to a limit of 18MW generation should not arise.
- Sometimes, for technical reasons NEA sends instructions to BKPC to reduce the Electricity Generation from BKPC Plant but because these instructions are not followed in writing it creates room for doubt later in honoring these instructions for outage calculations that are required to be paid by NEA.
- Is the power supplied by Bhote Koshi Power Company more expensive?
- Who are the owners of Bhote Koshi Power Company Pvt. Ltd.?
- Who are the lenders to Bhote Koshi Power Company Private Limited?
- Does BKPC have any royal holdings?
BKPC does not have any Royal Holdings.
Deemed Generation is the power generation capacity agreed upon for each Nepali month in the Power Purchase Agreement (PPA). The Deemed Generation is less than 36 MW except for the months of Shrawan (Mid-July - mid-August) and Bhadra (mid-August - mid-September).
BKPC generates and sell power to NEA within its generation license capacity of 36 MW only, although its installed plant capacity is 45 MW. The Deemed Generation prescribed in PPA varies every month due to variance in availability of water in river (hydrology). Any excess generation beyond the prescribed Deemed Generation for the month is automatically deducted from the highly sophisticated computerized meter reading every month.
BKPC has made several representations in the past and is still ongoing with NEA, Department of Electricity Department (DOED) and Ministry of Water Resources (MoWR) stating that these issues are in contravention of the PPA, however, NEA continues to deduct from BKPC Invoices ignoring the provisions of PPA.
As the project is financed through international financial institutions like IFC and DEG, the Energy Cost at the time of the PPA was based on the US Dollar. Although the base tariff is as per the PPA, the equivalent Nepalese Rupee value has gone up due to devaluation of the Nepalese Currency. This is beyond the control of both the parties and as such, BKPC tariff cannot be compared as being expensive.
Himal International Energy Private Limited (HIEPL) is the majority shareholder of BKPC with 75% of Shares. 10% is owned by Himal International Power Corporation Pvt. Ltd. 10% by Tara Fund Pvt. Ltd and 5% by RDC of Nepal. Mr. Siddhartha SJB Rana is the Chairman of all these companies.
At present International Finance Corporation (IFC) and Deutshe Investitions-und Entwicklungsgesellschaft mbH (DEG) are the lenders of BKPC.