Govt asks Nepra not to pass Rs146 bn NHP on to power consumers

ISLAMABAD: The government has decided not to pass the burden of Net Hydel Profit amounting to Rs146 billion on to the electricity consumers.

Power Division headed by Federal Minister Omar Ayub wrote a letter to National Electric Power Regulatory Authority (Nepra) asking them not to pass the impact of Rs146 billion NHP on to end consumers pre-empting that if it is not stopped the power tariff will further escalate and it will invite the wrath of the masses.

It is pertinent to mention that the amount was to be paid to Punjab, KPK and Azad Jammu and Kashmir in the head of Net Hydel Profit. The previous government decided in the CCI (Council of Common Interest) meeting held in 2016 to pass the impact of Rs146 billion on to consumers to ensure the long standing dues in the head of NHP to KPK, Punjab and AJK.

However, the present government has dispatched a letter to the regulator of which copy is also in possession of The News asking to eliminate the impact of the NHP from the tariff. But the situation is otherwise as Nepra has already announced its verdict on the petitions of the CPPA seeking spike in the tariff based on the petitions from CPPA supported by Discos with main factor of Net Hydel Profit of Rs146 billion. “We cannot undo it just on the letter of Power Division, as the regulator has given its determination based on the petition of the Discos seeking inclusion of NHP in the tariff.”

Nepra in its internal meeting has carved out the stance that says the amount in the head of NHP has already been included in the tariff of Wapda and K-Electric and has been transferred to the account of Discos and if the amount is excluded from the accounts of the Discos it will be having serious legal implications.

The Power Division has suggested the Wapda will raise the amount from banks to pay the said amount to KPK, Punjab and AJK but Wapda says the NHP is considered as capacity charges which are a pass through item to consumers.