KP demands 390pc increase in net hydel profit, Wapda seeks rise of 98pc in hydel tariff per unit
Islamabad: The Khyber-Pakhtunkhwa (KP) government has demanded a 390pc increase in net hydel profit (NHP) from Rs1.10 per unit to Rs5.38 per unit. Water and Power Development Authority (WAPDA) has also sought a rise in hydel tariff per unit of 98pc or Rs 3.61 per unit to meet their financial obligations and expenses. If Nepra allows this tariff hike, it would generate Rs 70-80b additional revenue for KP government.
These demands were put forth in a public hearing held at National Electric Power Regulatory Authority (NEPRA) on Wednesday under the Chairmanship of Vice Chairman Saifulah Chatta on bulk supply tariff petition of Wapda hydroelectric.
The KP Chief Minister Pervez Khattak along with cabinet members also attended this meeting. WAPDA was represented by Chief Financial Officer, Anwarul Haq, KP legal adviser Shumail Butt gave the provincial govts viewpoint and Barrister Asghar Khan spoke for consumers.
Khattak mentioned that his province generates 14pc of the electricity, but isn’t supplied more than 10pc. He demanded this 10pc cap to be removed, which would put an end to power outages in the province if they are given their share of electricity. He lambasted the government for its generation claims as being fruitless since WAPDA wasn’t upgrading its system and the power wasn’t reaching the consumers. He said “Are they going to throw surplus generation into the sea or export when they have not improved the system to deliver it to consumers? Wapda is at the peak of incompetence.”
Barrister Khan, speaking on behalf of consumers put forth his arguments before Nepra. He said it wasn’t plausible for Wapda to operate under one bulk generation licence, because as per the Nepra Act, every generation facility needs a separate license. Khan highlighted that it is mandatory for Wapda to provide duly audited accounts or regulatory accounts for public and regulatory scrutiny. He also opined the consumers of electricity cannot be burdened retrospectively with the arrears of the net hydel profit as it is contrary to the law, constitutional provisions and fundamental rights.
Khan asserted that NHP has to be calculated in accordance with the express and mandatory provisions of the Article 161 (2) of the constitution which provides for methodology for determination of net hydel profits which cannot be converted into rate asset base by Wapda or the regulator and charged again to the consumers; that power has been mandated to CCI in accordance with prescribed parameters