ISLAMABAD: Water and Power Development Authority (Wapda) has urged Power Division to pay at least Rs 100 billion on account of hydroelectric energy payables and Net Hydel Profit (NHP) to enable it to meet operational and development needs as its infrastructure has been damaged in floods.
In a letter to Secretary Power Division, Rashid Mahmood Langrial, Member Finance Wapda Naveed Asghar Chaudhry has given reference of earlier letter of Wapda dated July 28, 2022 wherein it was requested that CPPA-G be directed to release Wapda’s bare-minimum monthly requirement of Rs.7.50 billion against hydroelectric invoices. However, in July & Aug, 2022 only Rs.11.048 billion has been paid instead of Rs.15 billion.
According to Member Finance, the shortfall not only dampens Wapda’s financial capacity but also results in consistent build up of hydro-electric receivables which have now reached a staggering figure of Rs.245.467 billion. Of this, stock of energy receivables stood at Rs 68.923 billion, Net Hydel Profit (NHP), Rs 78.580 billion (GoKP, Rs 15.925 billion, GoPb, Rs 62.654 billion) and loans payable to Federal Government Rs.964 billion.
Hydroelectric invoices: Wapda seeks help of PD to get payments from CPPA-G
He further said that the recent devastating floods in Pakistan have affected infrastructure at both operational and development projects requiring necessary remedial works to bring them back on track. This emergent need requires settlement of Wapda energy sale receivables on priority. Moreover, in compliance with ECC decision of March 16, 2022, Rs 25 billion was paid to Wapda in the previous FY for settlement of its receivables, while payment in the CFY is still awaited.
The piling of receivables is not only severely dilapidating Wapda’s capacity to meet essential payments including O&M expenses and debt servicing of its commercial loans but is also adversely affecting the equity injection needs in mega hydel development projects of strategic national importance. Delays lead to disruptions in project timelines and ensuing cost escalations. To avert this liquidity crisis, Wapda is in dire need to settle its outstanding energy receivables amounting to Rs 68.91 billion by CPPA-G, he continued.
After explaining current position of Wapda, Member Finance has once again requested that necessary directions may be conveyed to CPPA-G for making monthly payment of Rs.7.50 billion against monthly hydroelectric invoice(s) besides immediately clearing overdue Wapda hydroelectric energy receivables of Rs 68.92 billion at the earliest enabling it to meet operational and development needs. However, CPP-G, the market operator, has informed all the competent forums that whatever recovery is received from Discos is paid to electricity suppliers, adding that priority is being given to IPPs.
Power Division recently terminated two Chief Executives of Discos for failing to control theft/ losses and improve recovery.
Copyright Business Recorder, 2022