Power consumers to pay interest through tariff on loans

ISLAMABAD: The electricity consumers will pay the interest payments through power tariff on commercial loans obtained by Wapda for paying the net hydel profit to Punjab and Khyber Pakhtunkhwa.

In this connection, a summary of Wapda hydel will be pitched in the next meeting of Council of Common Interests (CCI) that is scheduled on August 6. The CCI meeting of August 6 is set to approve the move of the government under which electricity consumers will pay the interest payments in the power tariff on the bilateral Islamic and commercial loans obtained by Wapda.

The CCI meeting held on December 23, 2020 approved Wapda structure with the decision that Wapda chairman will be appointed through rotation from all the provinces with no executive powers, rather he will be bound to oversee policy formulations.

Members of the Authority would also oversee policy formulations. However,

federal government will appoint Wapda CEO and relevant professional staff with executive powers and run the show and more importantly organisation shall be restructured to ensure corporate governance in Wapda.

According to decision, the CCI decided that ministry of water resources shall prepare recruitment regulation for Wapda in consultation with provinces keeping in view following principles that include 1) Organisational Organogram shall be restructured to ensure corporate governance in Wapda 2) chairman and members with no executive powers shall be appointed to oversee policy formulations 3) CEO and relevant professional staff shall be appointed by the federal government and 4) chairman of the Authority shall be appointed through rotation from all provinces.

However, ministry of water resources has objected the decision taken on December 23 by CCI and will pitch its argument against the decision in next CCI meeting to be held on August 6. Ministry of water resources will pitch its arguments saying that the decision has the potential to further dilute the federation rather than strengthen and can trigger more inter and intra-provincial differences.