Tariff-related issues being decided ‘carefully’ by Nepra owing to NAB probes
ISLAMABAD: Secretary Power Division, Irfan Ali said Tuesday that the National Electric Power Regulatory Authority (Nepra), the power sector regulator, is very careful in deciding tariff-related matters due to different investigations being conducted by the National Accountability Bureau (NAB).
He made these remarks at a meeting of Senate Standing Committee on Power headed by Senator Fida Muhammad Khan during discussions on 300 MW power plant in Gwadar (Balochistan). The NAB recently arrested one of Nepra's consultants (former Director General) Syed Insaf Ahmed, considered an honest senior official.
Secretary Power informed the committee that Nepra has increased tariff of Makran's power project to $ 7.6 cents per unit from 6.6 cents per unit.
According to the Secretary Power, he recently met with the officials of Chinese embassy and requested them to ask the Chinese company to accept the upward revised tariff.
Referring to the situation in Nepra, he said that presently different NAB investigations are underway accounting for Nepra officials being shy about "tariff" related matters. He said, Nepra officials physically visited Gwadar and examined the entire project and then approved the new tariff.
"We convinced Nepra that Gwadar is a special case and there is the issue of cost and equipment in addition to increase of other costs," he added.
Secretary maintained that Balochistan government should resolve the issue of land and funding must be released on time adding that the government is giving special focus to curb theft in power sector.
Additional Secretary Power Division/MD Pepco Waseem Mukhtar informed the committee that 1.8 billion less units have been consumed in July-May 2019 compared to corresponding period last year.
He said, Discos have recovered Rs 108 billion from consumers (Rs 94 billion from private and Rs 14 billion from public sector consumers) of which 25 per cent is related to tariff increase effective from January 2019, adding that recovery has also increased by 1.7 per cent The anti- theft drive will be continued across the Discos.
Commenting on the financial conditions of Peshawar Electric Supply Company (Pesco) and Quetta Electric Supply Company (Qesco) Secretary Power Division said that the Power Division requires funding from the government to improve the systems of both finically weak power utilities. In Qesco, out of 600 feeders, 400 feeders are mixed (tubewells and domestic consumers). He said 12,000 tubewells in Balochistan are illegal (unregistered).
He said, the Power Division does not have funds to support Discos and sometimes Discos are allocated funds over and above the margins allowed by Nepra. Irfan Ail said that tribal areas were supplied 10 hours in Ramzan which is continuing despite the fact that the government has earmarked only Rs 3 billion for electricity in erstwhile FATA. The situation in Sepco and Hesco has improved after anti-theft and recovery drives.
Secretary further stated that funding should be need based instead of area based, adding that in the past such practice was adopted.
Senator Shahzad Durrani said that Power Division is the first Ministry where things move from top to bottom whereas the opposite is the practice in other ministries.
The officials of Power Division revealed that the tender for consultants for Lakhra coal power plant will be opened on July 4. 2019 after which 6-7 months time is required to complete the feasibility study. However, the Power Division will request the consultant to complete feasibility as early as possible.
Senator Moula Bux Chandio who has pushed the Power Division to revive this project, praised his committee colleagues and officials of Power Division for taking an interest in this matter.
The issue of incomplete schemes of rehabilitation of electricity distribution infrastructure in Kohat was referred to the Senate Standing Committee on Planning, Development and Reforms as the Power Division said that it does not have funds for the schemes initiated under SDGs by the former government. Senator Shamim Afridi attended the meeting to push forth this issue.—MUSHTAQ GHUMMAN
