ISLAMABAD: Khyber Pakhtunkhwa (KP) Government has asked Water and Power Development Authority (Wapda) to pay an amount of Rs 21 billion of Net Hydel Profit (NHP) areas which also includes 5 per cent indexation, well informed sources in National Electric Regulatory Authority (Nepra) told Business Recorder.
KP’s Budget Officer (NFC) Rafiq Kamran, in a letter to Chairman WAPDA, has explained that the Nepra on September 2022 has modified its earlier order issued on August 23, 2022 relating to the five per cent annual indexation in the NHP cases which is as follows: (i) to approve 5 per cent annual indexation of MNHP over the rate of Rs 1.10/kWh to the Government of Khyber Pakhtunkhwa and Government of Punjab from FY 2015-16 and FY 2016-17, respectively, subject to its adjustment, if any, in the light of CCI decision; and (ii) Government of Khyber Pakhtunkhwa to move/ pursue its summary before the Council of Common Interests (CCI) in order to secure explicit approval in the matter and till receipt of any CCI order/ decision in the matter, the 5% annual indexation of NHP shall be continued.
According to the KP government, the modified decision was conveyed to Ministry of Energy (Power Division) by the Nepra for issuance of notification in the official gazette within 30 days of intimation of the decision.
The KP Government argues that the Nepra had categorically mentioned in the letter that if the Federal Government fails to notify the tariff decision or refer the matter to the Authority for consideration within the time period specified in section 3 (7) of the Nepra Act, then the Authority shall notify it in the official gazette pursuant to the section.
The Nepra has not notified the decision in favour of the Government of Khyber Pakhtunkhwa under SRO of October 21, 2022.
Copyright Business Recorder, 2022