Bagasse power plants request tariff cut

Bagasse power plants have also requested the National Electric Power Regulatory Authority (Nepra) for reduction in electricity tariff--a request which if approved can lead to cheaper electricity from these plants.

Nine bagasse power plants have requested a reduction in fuel costs and proposed to fix profit margins at 17% by reducing the return on electricity production.

A 10% reduction in maintenance and operational costs has also been requested. They have also requested a 0.7% reduction in insurance fees. The bagasse power plants have applied for permission to sell electricity in the open market.

Bagasse is the dry, fibrous material that remains after sugarcane or sorghum stalks are crushed to extract their juice. It is a byproduct of the sugar production process.