ISLAMABAD: Khyber Pakhtunkhwa (KP) government has raised different issues of provincial power sector with Minister for Power, Khurram Dastgir Khan, requesting him to convene a meeting of concerned stakeholders to sort out the challenging issues.
Advisor to caretaker Chief Minister KP on Energy and Power, Himayatulah Khan in a letter to Power Minister has highlighted that Net Hydel Profit (NHP) should be paid to the Government of Khyber Pakhtunkhwa by the Central Power Purchasing Agency (CPPA-G) instead of Water and Power Development Authority (Wapda).
On outstanding payment of PEDO, Advisor CM KP stated that payment of an outstanding amount of Rs. 9485.77 million of PEDO hydropower project against the Central Power Purchasing Agency-Guaranteed (CPPA-G)/ PESCO needs to be sorted out. Commenting on funding of power projects through PSDP, he stated that the power projects component of Wapda should be funded through PSDP on the analogy of water component as the issue was highlighted in the ECNEC meeting held on April 06, 2023 during discussion on different projects.
He further emphasized that the Government of Khyber Pakhtunkhwa may be facilitated in wheeling and sale of its power production to power purchasers other than national grid. On Water Usage Charges (WUC), Himayatulah Khan suggested that water use charges presently charged from the private sector hydropower projects@ Rs. 0.425 Kwh under Power Generation Policy 2015 need to been enhanced to Rs. 1.10 Kwh (equal to the rate of Net Hydel Profit (NHP).
Offering comments on petition filed against Khyber Pakhtunkhwa Transmission & Grid System Company (KPT&GSC), he said the Government of Khyber Pakhtunkhwa has established the KPT&GSC as provided in Article 157of Constitution of Pakistan, but NTDC has filed petition in Nepra against the establishment of the company, which is resulting in delays in the completion of transmission projects to be undertaken by the company. KP government has urged NTDC to withdraw its petition from Nepra.
Advisor to Chief Minister KP further stated that Power Purchase Agreement(PPA) for 81-MVW Malakand-III HPP signed with CPPA-G has no exit clause, requesting that the required clause may be inserted in the PPA enabling the Provincial Government to sell its power through wheeling to power purchaser other than national grid.
He also requested federal government to exempt PEDO project from Income Tax on the analogy of projects being established by federal government entities.
Advisor to CM KP has requested Minister for Power, Khurram Dastgir Khan to intervene in the matter and call a meeting of the concerned stakeholders for facilitation and early resolution of pending issue of power sector of the provincial government.
The caretaker Chief Minister Khyber Pakhtunkhwa (KP), Muhammad Azam Khan, has also placed nearly a dozen key demands before Prime Minister Shehbaz Sharif including release of pending amount of Rs 49.5 billion of Net Hydel Profit (NHP).
According sources, caretaker KP Chief Minister placed following eleven demands before Prime Minister, which are now on the table of top bosses of concerned Ministries for action and early response: (i) levy Federal Excise Duty on oil @ 5 per cent of valorem in light of Article 161 (1) (a) of the Constitution of Pakistan; (ii) increase Federal Excise Duty on gas from 10 to Rs 25 per MMBTU and link the rate to Consumer Price Index (CPI); (iii) schedule an urgent meeting of CCI and decide the matter of windfall levy on oil related to Tal Block; (iv) transfer windfall levy on oil share collected from Baratai and Togh Blocks to Government of Khyber Pakhtunkhwa without further delay; (v) transfer 50 per cent of Government Holding Private Limited (GHCL) share in KP Block to KP Holding Company in the light of Article 172(3); (vi) allocate 20 per cent Liquefied Petroleum Gas (LPG) produced by KP by GHPL and Pakistan Petroleum Limited (PPL) to KP-OGDCL on G2G basis; (vii) establish Pakistan Petroleum Upstream Regulatory Authority with representation recommended by the Provincial Government; (viii) Facilitate GoKP in wheeling of electric power to industrial sector of KP on the Pehure Model; (ix) Reallocate 100-MMCFD gas from power to industrial sector. Deputy Chairman Planning Commission may be directed to place the matter of Net Hydel Profit (NHP) in the next CCI meeting; (x) release the pending payment of NHP amounting to Rs 49.5 billion; and (xi) Flood Relief Assistance.
Copyright Business Recorder, 2023