ISLAMABAD — The Senate’s Standing Committee on Power has directed the National Electric Power Regulatory Authority (NEPRA) to hand over the past five years of financial statements from independent power producers (IPPs) for a detailed review of their returns on investment (ROI).
The directive came during a committee session at Parliament House chaired by Senator Mohsin Aziz, where lawmakers raised alarm over reports that some plants have enjoyed ROI figures of up to 100 percent — a level committee members called indefensible. NEPRA officials attributed the unusually high returns to dollar-linked contracts.
KP Hydropower Projects Dropped from Federal Plan
A major flashpoint was the removal of the 207 MW Madyan and 88 MW Gabral hydropower projects from the federal Indicative Generation Capacity Expansion Plan (IGCEP). Khyber Pakhtunkhwa’s energy advisor told the panel that land worth Rs. 5 billion had already been purchased and significant progress made, yet the projects were scrapped.
Federal Power Minister Awais Ahmad Leghari defended the decision, saying KP officials selectively cited clauses from the Council of Common Interests’ power policy. Including such projects, he warned, could raise electricity tariffs by Rs. 6 per unit by 2034. The minister noted that 8,000–10,000 MW of planned capacity — including several CPEC ventures — had been removed from the plan to prevent future price hikes.
Savings Claimed, But Theft Still a Problem
Leghari told senators that the government had canceled contracts with five IPPs and renegotiated others, projecting Rs. 3.4 trillion in savings over the next five years. This year alone, distribution company losses reportedly dropped by Rs. 191 billion. However, he conceded that electricity theft remains a persistent challenge.
Subsidies, Tariff Slabs Under Review
The committee also examined the “protected category” tariff structure, which subsidizes consumers using up to 200 units. Chairman Aziz urged the creation of multiple slab rates to prevent sudden jumps in bills. The Power Division confirmed a review is underway.
Net Hydel Profit Dispute
The payment of Net Hydel Profit (NHP) to provinces also sparked debate. NEPRA insisted payments are being made, but KP officials claimed the amounts are minimal and arrears continue to mount. The committee recommended clearing the backlog and paying at least Rs. 5 billion a month to KP, with a report due within a week.
Lower Wheeling Charges in the Works
On transmission fees, Leghari said NEPRA rules — already approved by the Cabinet — would slash the standard wheeling charge from Rs. 28 to a Rs. 12 base rate, pending NEPRA’s final nod.
The meeting was attended by multiple senators and senior officials from the Power Division, NEPRA, and provincial energy departments.
