Is the cost of power supplied by BKPC to NEA expensive?
When the PPA was signed in 1996, the tariff was equivalent to only NRs. 3.12, the exchange rate of one US Dollar then being approximately NRs. 52. As the PPA tariff is in US Dollar, the equivalent Nepalese Rupee value has increased due to devaluation of the Nepalese Currency. The average tariff of BKPC over the last 9 years is NRs. 5.94. Rupee devaluation is beyond the control of both the parties and as such, BKPC’s tariff cannot be deemed expensive.