Tariff row: Government warns to cut AJK’s power supply

State is charging Rs2.59 per unit less than tariff determined by govt.

ISLAMABAD:

Tensions between the Centre and the Azad Jammu and Kashmir (AJK) government over power tariff worsened on Wednesday as the former warned to cut off the latter’s electricity supply if the actual tariff was not paid.

“We have informed the AJK government that it may face a power disconnection,” Ministry of Water and Power’s Additional Secretary In-charge Saifullah Chatha informed the National Assembly Standing Committee on Water and Power on Wednesday.

The federal government wants the AJK to pay the National Electric Power Regulatory Authority (Nepra) the determined tariff of Rs14.65 per unit.

Chatha maintained that AJK’s current applicable tariff was Rs14.65 per unit but it was not ready to pay more than Rs2.59 per unit, which was determined in 2010 – the AJK government is currently charging local consumers Rs12 per unit.

The AJK has to pay the overall outstanding arrears amounting to Rs37 billion, he maintained.

Minister for Water and Power Khawaja Asif had taken up the matter with AJK Prime Minister Chaudhry Abdul Majeed and sought his help to resolve the payment issue, Chatha told the panel.

On the overall power situation in the country, he told the committee that electricity generation had increased with an improved supply of furnace oil, a 2,000MW increase in hydel generation and a diversion of natural gas from the fertiliser sector to power.

“The load-shedding situation will remain the same in June, but will improve in July,” he said, adding that a Ramazan package of electricity supply will also be announced just before the holy month begins. “We have been instructed to ensure three hours of supply during Sehri and three hours during Iftar and Taravih.”

The additional secretary said that the average electricity shortfall stood at 2,000MW whereas demand was 14,500MW against a generation of 12,500MW. He explained that the load-shedding duration depended on an electricity quota given to each distribution company (DISCO). Those DISCOs with high losses are facing more load-shedding as compared to those where losses are lower and recovery is better.

Meanwhile, Peshawar Electric Supply Company chief Tariq Sadozai said the current arrears against the K-P government are almost negligible as it recently paid Rs500 million. However, arrears past the due date are about Rs186 billion, including the tariff increase and fuel adjustment costs, that the provincial government had promised to pay on behalf of the public.

He said consumers of those areas where losses are 80% to 90% are facing 18-20 hours of load-shedding, respectively.

However, a Pakistan Tehreek-e-Insaf MNA from Malakand, Junaid Akbar, said it appears that Pesco is being used against the party, which is in power in K-P. In response, the Pesco CEO explained that the lack of investment in the system is the main reason for the losses. But he assured him and the committee members that new investment has been planned to improve the system.

Published in The Express Tribune, May 22^nd, 2014.