How is the above short pay issue being addressed?
Subsequent to the Management changeover of BKPC in March 2006, BKPC’s new management approached NEA to resolve the short pay matter amicably for the benefit of both the parties. Consequently, an MOU was signed as a package deal between BKPC and NEA on June 10, 2008, after prolonged discussions and negotiations between high level management teams from BKPC and NEA. The MOU resolved the ambiguity in Schedule 1 and Schedule 10 and came up with a ‘Restated Schedule 10’ for Deemed Generation that was agreeable to both the parties. The restated Schedule 10 was based on converting the estimated energy in Schedule 1 to monthly energy purchase requirement into Nepali months. Whatever amount was to be settled under this principally agreed schedule was accepted by both parties. The MOU also covered any additional energy available in UBKHEP – from its 45 MW installed capacity, to be purchased by NEA at a rate of NRs. 1.625 per kWh. BKPC conceded to this low tariff for additional energy considering
