Stormy CCI session likely

Council of Common Interests (CCI) which is scheduled to meet on December 23, 2019 is likely to witness a stormy session as Sindh and KP governments are likely to raise issues on Renewable Energy (RE) policy and Net Hydel Profit (NHP) with full force, well informed sources told Business Recorder.

Both the provinces have already conveyed their reservations to the federal government, the sources said, adding that both items are on the proposed agenda of the CCI to be presided over by Prime Minister, Imran Khan. The meeting will also be attended by the chief ministers and other concerned ministers and secretaries. Earlier, the meeting was scheduled for December 11, 2019.

The meeting will discuss implementation of the Kazi Committee Methodology (KCM) for calculation of NHP. Secretary Power Division, Irfan Ali is of the view that the Kazi formula is not doable. The other stakeholders, i.e., Power Division, Wapda and Punjab government do not concur with the recommendations of the Kazi formula.

The parliamentarians from KP are using all channels to get maximum financial benefit from Wapda/federal government under the guise of "implementation on the Kazi formula's calculation of NHP". Ministry of Planning, Development and Special Initiatives will also give its viewpoint on this issue.

Sources in Ministry of Planning, Development and Special Initiatives while citing the Power Division, told this newspaper that Kazi Committee was formulated by the CCI to deliberate on the issues of determination of rates/NHP. Such deliberations were carried out by the technical sub-committee as well as subsequent meetings of the committee. However, the report has ignored all such deliberations in its conclusions.

Power Division maintains that the Kazi formula has no impact on the consumer price of electricity. According to the Power Division, this is not the view taken by the technical sub-committee or Wapda.

On the issue of Renewable Energy (RE) Policy, the Sindh government has several objections that would be raised in the CCI meeting. In the past, Minister for Energy Sindh, Imtiaz Shaikh, wrote several letters to the federal government and has publicly stated that the provincial government was not consulted properly.

However, CEO, AEDB argues that proof of attendance and consent of Sindh government's representative was given and this would be shared at the competent forum.