Violation of orders: Captive power plants still receive gas at subsidised rates

NAB says it’s a case of criminal negligence or corruption on part of govt officials.

The briefing, which took place at the NAB headquarters on Tuesday, was organised in the wake of excessive load-shedding in the country. PHOTO: FILE

ISLAMABAD:


Captive power generators (CPGs) and independent power producers (IPPs) continue to be supplied natural gas at subsidised rates in violation of government orders, according to National Accountability Bureau officials.


This is an instance of corruption which is not possible without criminal negligence or involvement of government officials, they told The Express Tribune on Wednesday.  They added that the issue was in the spotlight at a briefing arranged for NAB officials by representatives of government bodies.

The briefing, which took place at the NAB headquarters on Tuesday, was organised in the wake of excessive load-shedding in the country. Bureau officials were briefed by representatives from the ministries of water and power, finance and petroleum, Federal Board of Revenue, National Electric Power Regulatory Authority (Nepra), Planning Commission, Sui Southern Gas Company and Sui Northern Gas Pipelines Limited.


NAB officials were told that the interim government’s instructions for the priority of gas supply  - which start with the general public, followed by efficient power producing companies and lastly the CPGs – were being flouted continuously.

CPGs, which are provided gas at subsidised rates so they can provide electricity to industries at subsidised rates, have instead been selling electricity at full rates back to the government, officials who attended the briefing told The Express Tribune.

During the briefing, Nepra representatives also pointed out that government ministries were issuing notifications for fixing tariffs despite the matter being the authority’s sole prerogative. “This way the notifications were being frequently delayed, causing huge losses to IPPs and the public at large,” NAB officials cited the Nepra representatives as saying.

Meanwhile, NAB Chairman Fasih Bokhari has instructed the institutions to follow all government orders in letter and spirit, and ensure gas is provided in accordance with the priorities laid down by the government, said the officials.

Published in The Express Tribune, April 18th, 2013.
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