Audit firms have cleared power distribution companies of the accusation that they sent artificially inflated bills, saying instead the consumers faced a 35% increase in electricity tariff after slabs were all but removed.
Federal Water and Power Minister Khawaja Muhammad Asif stated this while talking to the media at the inauguration of the Water and Power Development Authority (Wapda) office complex for mega hydroelectric power projects here on Wednesday.
Asif said audit firms had submitted their reports that pointed out that the 35% increase in consumer bills came after a drastic revision of the slab system. In July this year, the consumers also received 14% more electricity compared to the same period of previous year.
Though Pakistan was blessed with abundant energy resources such as hydroelectric, coal, solar and wind, timely steps could not be taken for the development of the resources and they could not be put to optimum use because of a lack of sustained policy focus and solid planning, he pointed out.
In an effort to utilise the country’s hydroelectric power potential of 40,000 megawatts, the Ministry of Water and Power has framed a three-pronged least cost power generation and water storage development plan to meet electricity and water requirements of the country.
Asif told the media that the government had stepped up work on the 969MW Neelum-Jhelum hydropower project and its first unit would come online in December next year in accordance with the directives of the prime minister.
In its drive to develop hydroelectric power projects, the government released Rs27 billion in fiscal year 2013-14 for the 4,500MW Diamer Bhasha dam and this year Rs15 billion has been earmarked for land acquisition on a fast-track basis.
The United States Agency for International Development (USAID) also hosted an investor conference in Washington in September to apprise US businessmen, investors and international financial institutions of the lucrative investment opportunities associated with the Diamer Bhasha project.
With this dam, the government has plans to develop 4,320MW Dasu hydropower project. Dasu will be constructed in two stages of 2,160MW each and the World Bank has agreed to finance the first stage.
In this regard, an agreement was signed with the bank in August in Islamabad, according to which it would provide $588 million for the project.
During a briefing at the opening of the Wapda office complex, it was pointed out that work had also started on 1,410MW Tarbela 4th extension project, which would be commissioned by mid-2016.
The Ministry of Water and Power also plans to launch the fifth extension of Tarbela project alongside the fourth extension. In addition to this, PC-1 of 7,100MW Bunji hydropower project has been submitted for approval and the process of land acquisition will start soon.
Published in The Express Tribune, December 11th, 2014.
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