The Council of Common Interests (CCI) has directed Minister for Power to include Secretary Power and Energy Advisor to Chief Minister KP in the committee constituted to draft the recommendations for implementation of Kazi Committee Methodology for calculation of Net Hydel Profit (NHP), well-informed sources told Business Recorder.
On September 24, 2018, Secretary, Ministry of IPC/CCI revealed that the Government of Khyber Pakhtunkhwa moved a summary for CCI on November 16, 2017 stating that Net Hydel Profit being paid to the province was much less than its due share and requested that the NHP be determined on the basis of AGN Kazi formula.
The CCI, in its meeting held on April 24, 2018 appreciated the contention of KP government and constituted a committee to deliberate upon the issue of determination of rates/Net Hydel Profit and submit report/recommendation in the next meeting of the CCI for decision.
The composition of the committee included Deputy Chairman, Planning Commission, Secretary Water Resources Division, Secretary, IPC Division and Chief Secretaries of Khyber Pakhtunkhwa and Punjab and members to be co-opted by the Chairman.
The Secretary, M/o Water Resources stated that in pursuance of the decision of 37th meeting of CCI, the committee has not yet been notified for want of appointment of Deputy Chairman, Planning Commission.
Chief Secretary, Khyber Pakhtunkhwa informed the house that the issue was lingering on since 1985, despite clear decision a number of times by the CCI. He stressed that the committee constituted by CCI may be given timeline to decide this longstanding issue. Report of the committee may be submitted to the next meeting of the CCI.
The Minister for Power asked to include Secretary, Power Division in the committee as the issue has substantial tariff related implications. The Secretary stated that the issue has substantial tariff related implications. The Secretary to the Prime Minister suggested notifying the committee as soon as possible in the light of earlier decision of CCI.
Finance Minister Asad Umar also stressed upon the need for implementation of the decisions already taken in this regard. He said that when taking the agenda of electricity tariff increase, the issue of Net Hydel Profit will be discussed in the forthcoming meeting of the ECC.
The CCI decided that the committee constituted by CCI in its meeting held on April 24, 2018 may include Secretary, Power Division and Advisor to CM KP on Energy as Member and notification may be issued by Planning, Development and Reform Division immediately.
The committee will hold its meeting soon after the appointment of Deputy Chairman, Planning Commission and shall give its recommendations in one month's time to be placed before the CCI. Project PC-1 of the CRBC project shall be submitted for consideration of Ecnec in its next meeting.