Power ministry, APTMA at odds over electricity tariff: NAB seeks details of CPPs from NTDC

The National Accountability Bureau (NAB) has reportedly sought details of Captive Power Plants (CPPs) from the National Transmission and Dispatch Company (NTDC) along with purchased electricity from them, well informed sources told Business Recorder.
The sources said that both the Ministry of Water and Power and All Pakistan Textile Mills Association (APTMA) are making contradictory claims regarding the pricing of electricity being generated by CPPs. The Ministry of Water and Power argues that textile units which have their own CCPs purchase electricity from NTDC at Rs 9 per unit and are selling it back to NTDC at Rs 12 per unit which implies that the textile units are earning Rs 3 per unit on each unit.
NAB maintains that despite clear instructions by the interim government that the "priority of gas would start with general public, followed by efficient power producing companies and lastly CPPs" are being flouted and violated. CPPs are units that are provided gas at subsidised rates so that they can provide electricity to industries. However, some of the CPPs are still being provided gas at subsidised rates but are selling electricity back to the government at high rates instead of to the industries at subsidised rates.
"This is an instance of corruption which is not possible without at the least criminal negligence and the most connivance of government functionaries," NAB stated in an official statement last week. The sources said, NAB is now grilling officials of power sector and Sui Southern Gas Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) over this 'scam' which caused financial loss to the national exchequer both in terms of sale of expensive electricity and supply of gas at cheap rates.
Insiders' claim that the efficiency of 50 per cent of CPPs is in accordance with the policy whereas 50 per cent are operating at lower heat rate which indicates that the second category is being supplied gas in violation of management and allocation policy of federal government.
"It is very simple that 50 per cent gas is being supplied to inefficient CPPs which is a profitable business for both the textile industry and gas companies officials," commented an official on condition of anonymity. An official told this scribe that the gas rates for CPPs are as cheap as for fertiliser sector that is why fertiliser sector is protesting over suspension of gas.
NAB has started monitoring functions of the entire power sector including SNGPL and SSGCL and has given final warning to all individual, government institutions, government functionaries threatening criminal proceedings against all violators. An analyst told this scribe that the efficiency of CPPs is lower than Independent Power Producers (IPPs) such as Saif Power, Sapphire Power Generation Limited and Halmore Power Plant which could use gas more efficiently.