ISLAMABAD - Inter Provincial Coordination Committee (IPCC) has asked the finance division to take the responsibility for the payment of Rs 80 billion to the provinces of Punjab and Khyber Pakhtunkhwa for the Net Hydle Profit(NHP).

In its 27th meeting, IPCC discussed the issue of payment of NHP to KP and Punjab and decided that the finance division should take the responsibility of payment of NHP along with arrears up to the tune of Rs 31.839 billion as arrears of 2015-16 and 2016-17 and Rs 15 billion for the five months (2017-18) to the province of KP in the spirit of agreement signed between the federal government and government of KP. CPPA and WAPDA shall recover this amount from the monthly recoveries of tariff.

According to the official documents, available with The Nation, it was decided that the federal government and WAPDA would ensure payment of NHP along with arrears up to the tone of Rs 33.2 billion (14.86 billion arrears, the payment of which was contingent upon finalization of tariff by NEPRA) and Rs 18.5 billion regulator annual NHP for 2016-17 and 2017-18 which was contingent upon tariff determination to the government of Punjab within current financial year. Moreover, NEPRA would process the tariff determination to ensure payment of monthly installments of NHP to the provinces as per timeline given in the report of Sub-committee of CCI.

Earlier, in continuation of previous meetings of the Sub-committee of CCI held on 6th September 2017, 25th and 26th meetings of the IPCC the issue of NHP was discussed. It was informed that the then water resource secretary had committed to resolve the issue within 2-3 days after return of Secretary power from the visit abroad. However, the issue is still unresolved due to the transfer of the secretary water resources. IPCC was informed that the report of Sub-Committee of CCI on the subject had already been sent to the Prime Minister. Further action on the report was awaited. The Chief Minister Khyber Pakhtunkhwa, Secretary Energy Punjab and Special Secretary Finance, Punjab, insisted upon immediate release of NHP as they had already incorporated in the development budgets for the ongoing financial year. Member finance WAPDA and Joint secretary power division expressed their inability to release the NHP to Punjab and KP as notification of tariff had not been issued and recoveries from Discos were awaited. Secretary Power division stated that summary to this effect had been submitted to the cabinet for approval.  It was decided that the cabinet division will be requested for placing the summary of tariff determination and notification for fiscal 2015-16 to the next meeting of the cabinet.

It is pertinent to mention here, in February 2016, the federal government and government of KP agreed to uncap net hydropower profit (NHP). A total amount of Rs70 billion was agreed on account of arrears of uncapped NHP. It was decided that the payments to KP would be made in four installments. The first installment of Rs25b would be paid to the province during the first year (FY2015-16) and remaining amount in equal installments of Rs15bn each in three years. However, so far only one installment was paid to KP and after that the province didn’t get any payment.

On the issue of provision of real time data of electricity, it was informed by secretary power division that real time generation and utilization of electricity was not available and hence they were unable to provide the same to the provinces. However, he stated that data on weekly basis could be provided to the provinces. The provinces requested that the concerned federal ministries may email the data to the provinces in addition to placing it on their websites. Member NEPRA informed that the power regulatory body had conducted a study on generation and further allocation of electricity to the Discos. The provinces were not getting their shares of electricity.

It was decided that Ministry of Energy would ensure provision of data on weekly basis to the provinces through email about the generation and supply to the Discos as per their share. Every province should get its share as per generation and not according to their demand.