ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has reportedly brushed aside Power Division’s accusations in which the latter had accused the regulator of violating CCI decision in determination of Net Hydel Profit (NHP) for two provinces, sources close to NEPRA chairman told Business Recorder.
“We are extremely surprised to receive the letter from the Ministry of Energy (Power Division) as NEPRA itself took the matter to CCI to seek clear instructions on NHP indexation which shows that NEPRA never intended to decide the matter on its own and requested CCI to provide a firm decision in this regard,” sources quoted NEPRA additional director, registrar office as saying in reply to the letter of Power Division written on October 7.
The regulator has stated that the authority is fully aware of the role entrusted to it by the legislators under the NEPRA Act and at the same time it is also fully cognizant of CCI role as given in the Constitution of Islamic Republic of Pakistan, 1973 especially with respect to NHP as enshrined in article 161l (2) of the Constitution, 1973. For the same reasons, in all past determinations of WAPDA hydroelectric since 2004, NEPRA has repeatedly taken a position that the Authority to determine NHP rate rests with the CCI.
According to Power Division, in its determination of April 5, 2021 NEPRA, recognizing that the Council of Common Interests was the relevant body when approving the NHP, cited the report on power sector prepared by the Committee for Power Sector Audit, Circular Debt Resolution & Future Roadmap which stated “the Committee did not however find any record which shows that the CCI has approved such indexation.”
However, NEPRA argues that in the instant case the allowance of indexation to provinces of KPK and Punjab was given after careful review of the decision of the CCI of January 13, 2022.
Regarding the issue of 5 percent annual indexation on NHP, already approved by the CCI, NEPRA, in its letter stated that it was agreed that the Government of KP may move a summary on this issue in the next CCI meeting as it was not on the agenda of the present CCI meeting.
NEPRA maintains that the decision clearly states that the indexation on top of base rate of Rs 1.10 per kWh had already been approved by the CCI. However, CCI directed Government of KPK to bring a new summary on the subject in the next CCI meeting. In order to honour the decision of the CCI, NEPRA upheld its earlier interim decision of September 09, 2022 subject to CCI’s final decision on this matter in the next CCI meeting. To further strength this, Chairman NEPRA in its additional note also mentioned that if Government of KPK in the next CCI meeting fails to put up the summary, NEPRA will take up the matter with CCI itself.
Copyright Business Recorder, 2022