Probe into over-billing: interim report to be submitted this week, Senate body told

Ministry of Water and Power on Monday revealed that the audit firms hired by Pakistan Electric Power Company (Pepco) to investigate reasons behind the inflated bills are to submit an interim report to the government within this week. The newly-appointed Additional Secretary Water and Power, Umar Rasool, who represented the Ministry, also assured the Senate Standing Committee on Water and Power that all of its instructions will be conveyed to the top brass and implemented in letter and spirit.
Chairman Standing Committee Zahid Khan urged the government not to waste national exchequer on the audit of electricity bills as Nepra has already accepted responsibility for slashing tariff slabs from five to two from April 2014 which resulted in a massive increase in tariff.
"Standing Committee secretariat has written a letter to the government to reverse its decision regarding squeezing of tariff slabs and adjust over-billing but no response has been received so far," Zahid Khan added. Chairman Wapda Zafar Mehmood requested the Standing Committee members not to hold Wapda responsible for billing or Discos' other matters as such impression creates hurdles in financing arrangements.
Zahid Khan clarified that the committee has already written a letter to the government that Wapda has nothing to do with electricity bills. Additional Secretary Ministry of Water and Power also assured the committee that promotion criteria for pending cases of promotions in Discos from BS- 18 to BS- 19 and BS-19 to BS-20 will be sent to Committee secretariat within a week. However, he sought three months to convene Pepco's Board meeting to approve promotions of those officials who are no more under investigation.
In a written reply to a question on evacuation of power from 26 power plants- 500 KV transmission line network, Wapda's official Abdul Razak Cheema said the project was assigned to the consultants ie P.B Power UK in a joint venture with power planners international Ltd UK and M/s MAES Ltd Lahore on September 7, 2009 to carry out the feasibility study for evacuation of power from 26 hydropower projects in the North including Neelum Jhelum at a total cost of GBP 1,137,107+ Rs 133,358,502.
The consultants have to establish the corridors for construction of proposed double circuit 500 KV T/line as interconnection scheme for the projects along with design etc M/s P.B UK has still to submit the design and workability plan etc as per ToR due to which some payment has been withheld.
"Their payments have been partially withheld and the consultants have been paid an amount of GBP 765,939.20+ Rs 10,114,772,200 and balance payment is GBP 371175 and Rs 32210780. The consultants have assured Wapda to complete the outstanding work. Giving update status of 969 MW Neelum-Jhelum hydropower project, Wapda informed the committee that transmission scheme for dispersal of power from Neelum Jhleum project initially envisaged the construction of 500 KV S/C from Neelum Jhelum to Rawat and 500 KV single circuit from Neelum Jhelum to Gujranwala using "drake conductor" for which M/s Nepak+ Barqaab carried out a line survey.
However, in view of the expected future junction of corridors for evacuation of power from HPPs on the river Indus and its tributaries in the Northern areas, the original scheme of evacuation of power from Neelum Jhelum plant was revised by NTDCL from two 500 KV single circuit T/ lines to one 500 kV double circuit T/line from Neelum Jhelum to existing Gakkhar (Gujranwala) 500 KV grid station.
Chairman Standing Committee expressed annoyance at the delay in work on power house, etc, of Golen Gol Power Project and requested Senator Nisar Mohmand to visit the project and submit a report to the committee. Zahid Khan snubbed two Wapda officials who tried to misstate facts regarding work on Golen Gol project.
Member Water Wapda informed the committee that Kuwait Fund has agreed to finance the project but a release is linked to civil works. Chairman Wapda assured the committee that he will personally inspect the project mid of November to assess the work completed so far.
In response to a question regarding Munda Dam, Chairman Wapda informed the committee that the Ministry of Law and Justice has allowed Wapda to start work on the project. He maintained that Secretary Ministry of Science and Technology will finalise an inquiry into the affairs of Munda dam in a couple of days.
Syed Naseer Gilani, Chief Water Planning Commission, stated that the design of the project is inaccurate as there are apprehensions that 186,000 cusecs would cross the dam which is the main concern of Planning Commission. Managing Director (MD) Nandipur Muhammad Mahmood said that two turbines of 95.6 MW capacity had been completed and operated on furnace oil and diesel. He said that the project could not be abandoned as 50 per cent works had been completed.
"The country could face a US $350 million loss," he said and disclosed that this project would generate power at Rs 36 per unit. He assured the committee that the project will be completed in five months before schedule. According to Managing Director of Nandipur Power Project, the Ministry of Water and Power has sent the Nandipur project case to National Accountability Bureau (NAB).
According to him, the project will be completed in few months at a cost of Rs 58.5 billion. However, he did not mention that $100 million has been spent on the conversion of project to gas. Senator Zahid Khan said that 450 MW Nandipur power plant would also be operated on furnace oil and High Speed Diesel to generate power at Rs 36 per unit. "It would have been better to abandon this project," he said and termed Nandipur power plant a white elephant.
However, MD Nandipur said the country would have faced a loss of $380 million had the contract been terminated as Rs 22 billion had already been spent on the project. For new contract a time of 12 to 18 months is needed. "If the government is buying power from Independent power Plants (IPPs) at Rs 14 to Rs 16 per unit, why should the government set up Nandipur power plant," he said. Senator Shahi Syed said that the government should have preferred dams rather than Nandipur plant. "It is negligence of power ministry and concerned departments," he said. Senator Mohsin Leghari said that consumers need cheap electricity and government must eliminate the circular debt. He maintained that the government should also focus on improving distribution system.