ISLAMABAD: Fatima Energy has sought the go-ahead of Prime Minister Shahid Khaqan Abbasi for a nod of an interim tariff for its power production plant.
To get the interim tariff approved, Fatima Energy has held two meetings with PM Abbasi in the last few days, reported Express Tribune.
Fatima Energy’s request has been rebuffed by the Private Power and Infrastructure Board (PPIB) and Central Power Purchasing Agency-Guarantee (CPPA-G), as it feels approval for the interim tariff could pave the way for a probe by the National Accountability Bureau (NAB).
According to officials having knowledge of the developments said Fatima Energy’s case was being advocated by Minister for Power Division Awais Ahmed Khan Leghari and wanted CPPA-G board’s approval for the interim tariff before the tenure of the outgoing government ends this month.
However, this was opposed by Power Division Secretary who also headed the board at CPPA-G who is said to have rejected the tariff application a few days ago.
In February, it was reported a four-member committee had been established by cabinet division to investigate misconduct in inter-changeability of Fatima Energy Limited from co-generation policy to an IPP.
As per sources, the committee was set-up on instructions of the Cabinet Committee on Energy (CCoE), to be held under the aegis of Secretary, Cabinet Division including Secretary, Power Division, Managing Director, Private Power Infrastructure Board (PPIB) and Joint Secretary (EA).
The Prime Minister’s office was to carry out the investigation against Fatima Energy Limited, sources had told.
As per sources, it was alleged ex-Minister for Water and Power Khawaja Asif, ex-secretary Water and Power Younus Dagha and MD PPIB Shah Jahan Mirza were responsible for providing special favour to FEL.
Since Mr Mirza is also held in great esteem by Minister for Power, Sardar Awais Ahmad Khan Leghari, it is expected he will also be adjudicated for his alleged role in this matter.
But FEL had challenged the assertions of the federal government citing a meeting was held between Prime Minister and the company representatives in presence of Secretary, Power Division.
The meeting as pointed by FEL discussed matters pertaining to delay in COD of the company’s 120-megawatt power project.
It added guidance had been sought to receive the earliest dispatch of electricity to national grid since the FEL power plants were ready and set to transmit power.
FEL was apprised during course of the meeting that an investigation was underway regarding the implementation of Fatima Energy Limited under Cogen Policy 2008.
FEL clarification
It is pertinent to mention that in a statement issued on Saturday FEL clarified that the FEL 120 MW Coal based power project was registered with Private Power and Infrastructure Board (PPIB) in December 2015 specifically under the National Policy for Power Cogeneration by Sugar Industry
The statement added, FEL project is the world’s largest and most efficient in this configuration, which is, financed by Pakistani lenders and investors. The project is designed to use indigenous fuel bagasse, which is environment-friendly and shall save foreign exchange of Pakistan.
National Electric Power Regulatory Authority (NEPRA) has issued tariff determination of FEL dated January 18, 2018, for the supply of power to CPPA and advised CPPA to proceed further with a power purchase agreement with FEL. Since then FEL is striving to supply of low cost critically required power immediately to the people of Pakistan through the national grid.
Subsequently, FEL has c
Ministry of Energy (Power Division) MoE desired clarifications from Mininitry of Law related to court proceedings, which FEL has filed for execution of a Islamabad High Court order dated September 6, 2017, as NEPRA has failed to implement the court order. Ministry of Law has clarified that since no restraining orders have been issued by the IHC, therefore CPPA could proceed further with buying power from FEL power plant.
Furthermore, as mentioned earlier in media news, an inquiry was held by Ministry of Energy (Power Division) at the directions of the former prime minister Nawaz Sharif during CCoE meeting to probe matters relating to the FEL project for conversion from captive to IPP mode.
Media reports unequivocally exonerated FEL and Ministry of Energy (Power Division) for any wrongdoing or malpractice as FEL was never a captive power plant and always registered as IPP under one power policy being Cogeneration Power Policy 2008.
In January 2018 another inquiry was initiated by CCoE for the same issue for reasons unknown. FEL has presented all facts of the project to the committee along with documentary evidence.Â
It is obvious from above that there is no new tariff application filed by FEL with anyone as tariff has already been determined by NEPRA in Jan 2018 and validly exists in the field. Ministry of Energy (Power Division) has not rejected any proposals or requests submitted by FEL.
In view of above, FEL has complied with all power sector regulations and the law without any deviations. FEL is standby for Ministry of Energy (Power Division) to complete the required process for the purchase of power. Unfortunately, the power plant is idle for 2 years depriving consumers of low cost readily available energy in peak summers, causing huge losses to the company and the nation.
