Mira Power Limited (MPL), a South Korean investor in Pakistan’s hydropower sector, has indicated it may seek resolution through international forums following the National Electric Power Regulatory Authority (NEPRA) ‘s decision to deny tariff calculations in U.S. dollars.
The company, which operates the 102 MW Gulpur Hydropower Project, expressed dissatisfaction after NEPRA insisted that project costs be calculated in Pakistani rupees, dismissing any allowances for foreign exchange impacts.
MPL had previously approached the Power Division, sending a formal request on June 1, 2024, for a meeting with the Secretary of Power to discuss the matter. However, the meeting failed to materialize. According to MPL’s CEO, the company managed all financial commitments in U.S. dollars based on initial approvals from NEPRA. Thus, the regulator’s current stance presents significant operational challenges.
The CEO has since urged the Power Division to help mediate a resolution to avoid escalation. Should NEPRA maintain its position on refusing dollar-based tariff payments, MPL is prepared to pursue all legal avenues, including arbitration, to protect its contractual rights.
Mira Power Limited is a subsidiary of Korea Energy (KOEN), which has been actively contributing to Pakistan’s energy sector by generating 102 MW of electricity at the Gulpur Hydropower Plant since 2022. The plant, located on the Poonch River near Gulpur village in Kotli district of Azad Jammu and Kashmir, was developed with oversight from NESPAK and MWH.