ISLAMABAD: Hub Power Company Limited (Hubco) has requested the Power Division to issue the required notification in the official gazette in line with the amended agreement for Narowal Energy Limited (NEL), as CPPA-G is currently not accepting its invoices.
In a letter to the Power Division—copies of which were also sent to the National Electricity Task Force, Army Air Defence Command Westridge-III, Rawalpindi, and the Chief Executive Officer of CPPA-G, Rihan Akhtar—Hubco’s CFO, Muhammad Saqib, referenced the company’s earlier communication dated April 4, 2024.
According to Hubco, following a decision by the Cabinet Division on January 14, 2025, and under Section 2.2(b)(xiii) of the Amendment Agreement signed between the Government of Pakistan (GoP), Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), and NEL on February 28, 2025, the GoP had agreed to facilitate NEL regarding the pending gazette notification by the Ministry.
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The CFO further stated that due to the non-issuance of the official gazette notification, CPPA-G has refused to accept invoices related to the reimbursement of withholding tax on dividends, amounting to a total of Rs 122 million. This delay, he noted, has caused significant financial loss to NEL.
He urged the Power Division and other concerned authorities to expedite the publication of the notification in the official gazette.
Earlier, in its letter dated April 4, 2025, Hubco informed the Power Division that Nepra had issued a decision on the matter of reimbursement of withholding tax on dividends for NEL through its determination dated January 28, 2020. However, since Nepra’s decision was issued prior to the amendment to Section 31(7) of the Nepra Act, it now requires formal notification by the Federal Government.
Under the Amendment Agreement, the GoP had reaffirmed its commitment to facilitate NEL in this matter.
Copyright Business Recorder, 2025
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