PHOTO: REUTERS
Separately, in order to meet financial obligations and other expenses, the Water and Power Development Authority (Wapda) has demanded an increase of 98% or Rs3.61 in hydel tariff per unit for fiscal year 2017-18.
These demands were presented at a public hearing held by the National Electric Power Regulatory Authority (Nepra) under the chairmanship of Vice Chairman Saifullah Chattha on a tariff petition of Wapda for bulk hydroelectric power supply.
Wapda’s case was presented by its Chief Financial Officer Anwarul Haq whereas K-P Legal Adviser Shumail Butt gave the viewpoint of the provincial government.
K-P Chief Minister Pervez Khattak, along with cabinet members, government allies and representatives of opposition parties, was present at the hearing.
Speaking on the occasion, Khattak accused the federal government of tampering with minutes of meetings of the Council of Common Interests (CCI) and stated he had taken up the issue in the previous meeting.
He said the CCI decision had already been given on the net hydel profit and the presidential order was also in place, adding now Nepra should announce its decision in accordance with the constitution. He insisted that the Rs1.10 per unit net hydel profit was only temporary.
He also criticised the low capacity of the power transmission system, saying if the system did not improve, how the government would sell electricity in coming months. “K-P is not being given its 14% share,” he said.
“We are just being given 8-10%, which is unfair. If one part is unable to utilise it, then give it to that part of the province where the system is better,” he added.
After the hearing, Khattak told the media that if Nepra accepted its request, the province would receive Rs91 billion per annum in accordance with the net hydel profit formula of 1991.
At present, power projects of 4,000-megawatt capacity are being constructed in K-P.
In reply to a question, the chief minister said power distribution companies were involved in corruption and theft and he was ready to extend all possible policy support to eliminate the stealing of electricity.
Nepra’s acting chairman told Khattak that a team of the regulatory authority, headed by K-P member Hamayat Ali Khan, would visit the province to familiarise itself with the electricity issues. He said smooth supply of electricity was the constitutional right of the province.
K-P representative Shumail Butt pointed out that according to the constitution, net hydel profit was the right of the province concerned, but Wapda was giving only Rs1.10 per unit whereas the remaining amount was being spent on expensive power projects in Punjab.
Appearing on behalf of the consumers, Barrister Asghar Khan argued during the hearing that Wapda could not operate under one bulk generation licence. Under the Nepra Act, he said, each generation facility had to be separately licensed and it was mandatory for Wapda to provide duly audited accounts for public and regulatory scrutiny.
He stated that the consumers of electricity could not be burdened retrospectively with the arrears of net hydel profit, which was against the law, constitutional provisions and fundamental rights.
Khan said net hydel profit should be calculated in accordance with the express and mandatory provisions of Article 161(2) of the Constitution, which provides for methodology for the determination of net hydel profit.
He advocated the case of consumers, stating that once the tariff was paid by them, they should not be burdened again with net hydel profit, which was not a pass through, otherwise it would result in unjust enrichment of public sector entities at the cost of consumers.
Published in The Express Tribune, June 9th, 2017.
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