KATHMANDU: Independent Power Producers' Association-Nepal and Small Hydro Power Developers' Association Nepal has urged the government to re-adjust the new Power Purchase Agreement rates. Nepal Electricity Authority in December had fixed two different PPA rates for dry and monsoon seasons for projects generating up to 25 MW. As per the agreement with NEA, the producers are supposed to supply at least 80 per cent of the energy generated.

"This is one of the driest winters without rainfall for more than five months, resulting in decreased power generation," said Hari Bairagee Dahal, chairperson of SHPDAN. "The rates fixed are not only low but division of seasons -- four months dry and eight months rainy season -- is illogical. That should be changed into six months dry and six month rainy season," he added.

A letter submitted to the Ministry of Water Resources by IPPAN and SHPDAN on Monday urged the government to scrap the provision of penalising producers for not being able to supply electricity as agreed upon, as energy producers are already bearing losses due to decreased power generation.

They also demanded a review of the PPA with private sector projects that are already generating power. If that can be reviewed, independent power producers bearing the brunt of inflation and rise of construction materials would be relieved, states the letter.

NEA has been purchasing 150 MW electricity from private power producers.