ISLAMABAD: The Water and Energy Improvement Authority (Wapda) has sought a Rs1.50 per unit improve in tariff to facilitate the cost of Rs70 billion to Khyber Pakhtunkhwa on account of the Internet Hydropower Revenue (NHP) settlement.
In its petition to the Nationwide Electrical Energy Regulatory Authority (Nepra), Wapda stated it had been instructed by the federal authorities to boost Rs25bn as mortgage from banks and add Rs1.875bn as mark-up earlier than charging shoppers for the primary instalment in the course of the present fiscal yr.
In the meantime, Nepra and Wapda have developed variations over the precise tariff improve. Each side, nevertheless, refused to touch upon the difficulty on report. A senior Wapda official stated that the 31 billion models of hydroelectric energy can be costlier by Rs1.20 per unit whereas a Nepra official stated the rise demanded by Wapda was Rs1.50 per unit.
A transparent image would emerge as soon as Nepra takes for public listening to the Wapda’s request for tariff improve on Might 5.
Beneath an settlement signed by the federal and KP governments and permitted by the Council of Widespread Pursuits (CCI), Wapda would clear the cost of Rs70bn internet hydropower revenue to the province in 4 years.
Wapda knowledgeable the regulator that given the truth that the primary instalment of Rs25bn couldn’t be charged to the shoppers as a result of time constraints, the federal government had directed Wapda to boost a Rs25bn mortgage from banks at 7.5pc for one yr, translating right into a mark-up value of Rs1.875bn.
Wapda stated previous arrears of Rs15bn payable in 2016-17 also needs to be accredited to make sure restoration by way of a tariff improve throughout 2016-17.
This petition got here within the wake of a proper memorandum of understanding (MoU) signed by Water and Energy Minister Khwaja Muhammad Asif, Finance Minister Ishaq Dar and Khyber Pakhtunkhwa Chief Minister Pervez Khattak on Feb 25 and subsequently accepted by the CCI on Feb 29.
Beneath the MoU, the 2 sides determined that the uncapped NHP as decided by Nepra on the request of the KP authorities and the ministry of water and energy can be notified instantly by the ministry.
A complete quantity of Rs70 billion was agreed on account of arrears of uncapped NHP after reconciliation of mutual claims within the energy sector between the 2 governments as a full and last settlement. It was agreed that Wapda, after in search of concurrence of the CCI by means of the Ministry of Water and Energy, would file a tariff petition for restoration of arrears from energy shoppers throughout the nation.
The restoration from shoppers and funds to KP was required to be made in 4 instalments, with the primary instalment of Rs25 billion to be paid throughout 2015-sixteen and the remaining quantity in equal instalments of Rs15 billion every over the subsequent three years.
In November 2015, Nepra had an roughly 217 per cent improve within the Internet Hydel Revenue (NHP) to Khyber Pakhtunkhwa whereas escalating the sale worth of cheaper hydropower by round sixteen per cent. As a consequence, the KP authorities would now be entitled to round Rs19 billion NHP yearly as in comparison with the Rs6bn in earlier years.
Revealed in Daybreak, April twenty ninth, 2016
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