Energy sector: Audit of debt under way on IMF’s request
Senate panel seeks briefing from senior officials on calculation of power cost.
The Rs180b circular debt figure covered the receivables of Independent Power Producers and Wapda’s generation companies, but it did not include the dues of oil companies. PHOTO: FILE
ISLAMABAD:
A parliamentary panel was informed on Friday that the government was conducting an audit of the stock of payables and receivables in the energy sector following a demand from the International Monetary Fund (IMF).
The Senate Standing Committee on Water and Power met here with Senator Zahid Khan in the chair. He was not happy with the explanation given by the officials and remarked that people were being robbed through levy of charges like fuel adjustment surcharge.
The Ministry of Water and Power admitted that the power sector subsidy had gone up to Rs180 billion.
A senior official of the National Transmission and Dispatch Company (NTDC) told the committee that circular debt had re-emerged and currently stood at Rs180 billion. The figure covered the receivables of Independent Power Producers (IPPs) and Water and Power Development Authority’s (Wapda) generation companies, but it did not include the dues of oil companies.
NTDC Managing Director Ziaur Rehman said different kinds of audit were being conducted pertaining to payment of Rs480 billion in circular debt, including one by the Auditor General of Pakistan and the other by a private auditor.
He said out of Rs480 billion paid to clear the circular debt, Rs270 billion went to the IPPs and Rs37 billion was given as interest payment.
He said solar tariff had been set at Rs19 per unit for a period of 10 years, which would be halved afterwards. Wind power tariff is Rs14 per unit.
Zahid Khan said he had evidence that the subsidy was not provided even on consumption of 25 units a month.
The committee then decided to seek a detailed briefing from senior officials of NTDC, Pakistan Electric Power Company (Pepco) and power distribution companies on February 18. It asked them to come with full preparation to explain the entire mechanism for calculating the cost of electricity at various stages.
Munda Dam cost
Ministry of Planning, Development and Reforms Secretary Hassan Nawaz said Wapda needed to submit a revised PC-II for Munda Dam as the cost, approved in 2012, required a revision in the wake of depreciation of the rupee against the dollar.
The secretary also told the committee that according to a study of the European Union, the flood level should be 33%, which was higher than the estimate in the feasibility study and required a complete change in the design.
He suggested that Wapda could present the PC-II again to the Planning Commission by addressing the issue of cost, incorporating the legal opinion of the Law Division about two court cases and the flood level.
The committee said it would like to know about the legal status of a recent raid by the https://blogs.tribune.com.pk/wp-content/uploads/2011/10/8475-lightsa-1318681807-351-640x480.jpg Khyber-Pakhtunkhwa minister of information at the residence of the chief of Peshawar Electric Supply Company (Pesco).
Pesco board of directors has passed a resolution to condemn the raid and a fact-finding committee has been constituted to determine whether any electricity theft was taking place.
Published in The Express Tribune, February 8th, 2014.
A parliamentary panel was informed on Friday that the government was conducting an audit of the stock of payables and receivables in the energy sector following a demand from the International Monetary Fund (IMF).
The Senate Standing Committee on Water and Power met here with Senator Zahid Khan in the chair. He was not happy with the explanation given by the officials and remarked that people were being robbed through levy of charges like fuel adjustment surcharge.
The Ministry of Water and Power admitted that the power sector subsidy had gone up to Rs180 billion.
A senior official of the National Transmission and Dispatch Company (NTDC) told the committee that circular debt had re-emerged and currently stood at Rs180 billion. The figure covered the receivables of Independent Power Producers (IPPs) and Water and Power Development Authority’s (Wapda) generation companies, but it did not include the dues of oil companies.
NTDC Managing Director Ziaur Rehman said different kinds of audit were being conducted pertaining to payment of Rs480 billion in circular debt, including one by the Auditor General of Pakistan and the other by a private auditor.
He said out of Rs480 billion paid to clear the circular debt, Rs270 billion went to the IPPs and Rs37 billion was given as interest payment.
He said solar tariff had been set at Rs19 per unit for a period of 10 years, which would be halved afterwards. Wind power tariff is Rs14 per unit.
Zahid Khan said he had evidence that the subsidy was not provided even on consumption of 25 units a month.
The committee then decided to seek a detailed briefing from senior officials of NTDC, Pakistan Electric Power Company (Pepco) and power distribution companies on February 18. It asked them to come with full preparation to explain the entire mechanism for calculating the cost of electricity at various stages.
Munda Dam cost
Ministry of Planning, Development and Reforms Secretary Hassan Nawaz said Wapda needed to submit a revised PC-II for Munda Dam as the cost, approved in 2012, required a revision in the wake of depreciation of the rupee against the dollar.
The secretary also told the committee that according to a study of the European Union, the flood level should be 33%, which was higher than the estimate in the feasibility study and required a complete change in the design.
He suggested that Wapda could present the PC-II again to the Planning Commission by addressing the issue of cost, incorporating the legal opinion of the Law Division about two court cases and the flood level.
The committee said it would like to know about the legal status of a recent raid by the https://blogs.tribune.com.pk/wp-content/uploads/2011/10/8475-lightsa-1318681807-351-640x480.jpg Khyber-Pakhtunkhwa minister of information at the residence of the chief of Peshawar Electric Supply Company (Pesco).
Pesco board of directors has passed a resolution to condemn the raid and a fact-finding committee has been constituted to determine whether any electricity theft was taking place.
Published in The Express Tribune, February 8th, 2014.