KP, Punjab protest over delays in signing of power-purchase agreements

Islamabad: Punjab and Khyber-Pakhtunkhwa have voiced their protest over the non-signing of power purchase agreements (PPA), as both provinces are supplying electricity from hydel-power projects at lower tariffs.

Currently, Water and Power Development Authority (Wapda) is receiving electricity from hydro-electric power plants at Rs2.17 per unit which excludes levies and taxes, reported a local newspaper.

With levies and taxes taken into consideration, the net hydel tariff rises to Rs4.05 per unit. This outstanding issue has come up for discussion in meeting in September.

The federal government has been told by KP Chief Minister Pervez Khattak to put an end to this problem and ensure Central Power Purchasing Agency-Guarantee (CPPA-G) sign the PPA immediately in line with decision of National Electric Power and Regulatory Authority (NEPRA).

Khattak demanded CPPA-G should be liable for paying the outstanding dues of Rs1.227b and ink PPA’s for Daral Khawar, Machia and Ronalia hydro-electric power projects. He added Pehur power station had been supplying electricity at an interim tariff of Rs1 per kilowatt-hour, since getting connected to the national grid in 2010.

In response to Khattak’s statement, CPPGA-G CEO said Nepra had sent the PPA on August 30th and will get signed by 15th October.

Finance Minister of Punjab also demanded that the province be treated on equal footing with KP in payment of net hydel profit (NHP).

 

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