Wapda tariff raise likely by February 15, World Bank team informed

The government has conveyed to the World Bank (WB) that the long-awaited increase in power tariff for Wapda consumers is expected to materialise by February 15, it is reliably learnt. This assurance was given by Water and Power Secretary Ashfaq Mehmood to the Bank's visiting energy sector team headed by Ian Alexander, which held a meeting with the ministry officials to take feedback on the short- and long-term tasks assigned by the Bank in December last.
Sources said the government had to notify Wapda's revised tariff in December last, but it delayed the notification due to differences among the ministries concerned over the subsidy issue, adding the International Monetary Fund (IMF) was informed that notification could not be issued until subsidy issue is resolved.
The World Bank in its last aide memoir had asked the government that tariff notification for both base tariff and fuel adjustment should be made not later than January-end.
The other targets given to the government include notification to the Bank on status of the availability of re-flow funds within the long-term credit fund, strategic business plans of Discos and timetable for implementing single buyer plus model, sources said.
Sources said the World Bank team expressed concern over the continuos delaying tactics adopted by the ministry in meeting the agreed targets, adding that actions were still required to finalise some areas of the plan.
They quoted the WB team as saying that some of the actions identified in the last aide memoire have either not been addressed within the agreed timeframe or have been only partly implemented.
They said the ministry also came under criticism for not completing corporatisation of the power sector till December 31, adding the ministry conveyed the Bank that it has convened a meeting with the Pepco on February 3 on the subject, but it was postponed after meeting with the Bank's team.
On the issue of loans for the Discos, the Bank was informed that companies did not convey their intention to take loan from the Bank for the development of infrastructure.
Sources said the WB team also raised queries about the Policy Implementation Cell (PIC) established in the water and power ministry, which would assist the ministry in policy development, planning and implementation of functions for the overall power sector by providing analytical services and policy advice. The cell would also assist in the review of tariff determination of the regulator and preparation of review motions.
Ashfaq Mehmood informed the WB team that the ministry has already given place to establish the office and also provide all possible facilities for smooth functioning.