Khyber Pukhtunkhwa government is facing difficulty to get revenue from inexpensive hydel power sold to National Distribution and Transmission Company of the federal government due to delaying tactics applied by the National Electric Power Regulatory Authority NEPRA. It is because of such tricks of the power sector regulator that payment of an amount of Rs.70 million is outstanding against the federal government despite induction of hydel power from Machai power station. From this power station, 13 million kwh electricity has been inducted into the national grid so far. According to media reports, PESCO is willing to write a letter to NEPRA.
Under the NEPRA Act, the power sector regulator has been given the role of determining a fair tariff, which is sustainable and acceptable to the stakeholders, including government and all categories of consumers. Nothing happens without its approval. However, unfortunately, it has lost its role of a neutral regulator by safeguarding the interests of power sector producers and consumers. It had allowed high generation tariff to IPPs in addition to its indexation with US dollar for diesel and furnace oil fired power plants. Moreover, it allowed a generation tariff of 8.5 US cents for the coal based thermal power plants in the private sector, whereas the existing tariff in other countries of the world ranges between 4 to 5 cents.
This sort of double standard will certainly impact the pursuit for low cost electricity generation from hydel and other renewable and clean energy sources, hindering the implementation of present government’s policy of achieving an optimal energy mix. It seems worthwhile that Khyber Pukhtunkhwa government take this issue to the forum of Council of Common Interest.
