Government of Pakistan proposes handing over the hydropower projects to respective provinces. The advice was given keeping in consideration the backdrop faced on the dispute regarding net hydel profit (NHP) calculations done by AGN Kazi committee.
The officials from the power division stated that accepting the strategy of AGN Kazi committee can play a severely negative role in the finances of the sector as the circular debt will cross three trillion rupees. The hydel profit dispute rose last year when it came under the observation of the power division that orientation of the decisions of CCI was changed to prove beneficial to only one of the provinces. The Ministry of Planning, Development and Special Initiatives has ordered the following instruction in the minutes recorded in the recent meeting : (i) all previous NHP finances shall be recorded and documented by the related authorities and shall be briefed in the next meeting ;(ii) Secretariat (MoPD&SI) will collaborate with CPPA-G to present tariff projections, anticipated subsidies and reform plan in the power sector during the next month;(iii) The process of transfer of hydel power plants to their respective provinces will be organized and planned by the provinces on their; (iv) Secretariat will collaborate with CPPA-G, Wapda and other stakeholders to develop and present a tariff model for the existing HPPs considering them as IPPs with Return on Equity (RoE). The report will be looked upon by the CCI in its next meeting to be held on 13th January 2022.
