KP yet to receive net hydel profit from centre

Over 10.3m units of electricity have so far been transferred from Machai Hydel Project to the national grid, for which the centre has to pay Rs73m to KP

PESHAWAR: The Pakhtunkhwa Energy Development Organization (PEDO) and the Peshawar Electric Supply Company (PESCO) have yet to reach an agreement on the sale of electricity for the Machai Hydro Project, owing to which the province was not being able to earn revenue despite spending billions on the project’s construction.

According to sources, there was a question mark on the seriousness of both the central and provincial governments regarding this important issue, particularly at a time when KP was going through a financial crisis. 

The issue was still lingering despite the fact the centre and KP were ruled by the same political party, they added.

As per PESCO officials, the 2.6MW Machai Hydro Project has been connected to the Mardan grid station, but no decision has yet been taken on electricity prices to be paid to the KP government. 

The Pakhtunkhwa Energy Development Organization (PEDO) has also not been able to resolve the issue despite several letters and meetings between them and the PESCO officials, they added.

Meanwhile, the National Electric Power Regulatory Authority (NEPRA) has requested PESO to file a petition with the authority to fight its case regarding the electricity price for the project.

According to an estimate, 10.3 million units of electricity have so far been transferred to the national grid, for which the centre has to pay Rs73 million to the KP government.

PEDO sources said that there were several important projects in KP that have been completed by the provincial government at a cost of billions of rupees, but due to unresolved issues, the centre was yet to provide net hydel profits to KP. 

Owing to non-disbursement of funds, other development projects in the province have also been delayed, they added.


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