DISCOS FRPs to be submitted in 15 days after tariff notification, Pepco assures World Bank

The Pakistan Electric Power Company (Pepco) has assured the World Bank that Financial Recovery Plans (FRPs) of DISCOS would be submitted within 15 days after receipt of notified power tariff, sources told Business Recorder. Earlier, the World Bank did not agree with the FRPs submitted by Pepco and Wapda and asked the government to revise, update and expand the plans in the light of determinations by Nepra and the guidelines spelt during discussion.
The bank said that the new tariffs would clearly have impact from the date of notification. However, what was not clear was if the additional revenue raised during the first six months would be used to cover some or all costs arising from the low hydel, additional demand and high fuel oil prices.
Sources said that corporatised entities had initiated work on their individual FRPs in the light of instructions received from the Ministry of Water and Power, adding that financial projections of corporate entities along with spreadsheet models had already been submitted to the bank.
World Bank, however, said that Wapda's successor entities have taken concrete steps to develop a FRP, made operating and financial projections for the next five years. The companies also identify areas for special focus by the management. It was also vital to develop the implementation mechanism besides monitoring and evaluation systems. The exact nature of these mechanisms and systems would vary in accordance with efficiency improvement programmes and the conditions prevailing in the jurisdiction of each entity.