ISLAMABAD: The Central and Khyber Pakhtunkhwa governments have agreed to increase net hydel profit from Rs6 billion to Rs18.8 billion per year.
The provincial government has demanded the National Electric Power Regulatory Authority (Nepra) to allow hike in hydroelectronic power tariff by Rs1.10 per unit to raise share of Khyber Pakhtunkhwa in net hydel profit or water use charges.
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The Khyber Pakhtunkhwa government raised this demand in a public hearing chaired by Nepra Chairman Tariq Sadozai.
However, the Water and Power Development Authority (Wapda) had sought an increase of Rs2.11 per unit in hydroelectric power tariff from Rs1.74 per unit in 2013-14 to Rs3.85 per unit for 2015-16 in order to recover Rs122 billion from the consumers.
Senior Wapda executive Anwarul Haque told Nepra that the utility used to pay Rs6 billion per year to KP under a 1991 formula and was instructed by the Ministry of Water and Power to collect Rs1.10 per unit from the consumers for paying net hydel profit/ water use charges to the provinces and Azad Jammu and Kashmir.
Accordingly, the share of KP would increase to Rs18.8 billion from Rs6 billion while Punjab and AJK would start getting Rs9.5 billion and Rs6.5 billion on the basis of Rs1.10 per unit net hydel profit/water use cost.
KP Chief Minister Pervez Khattak told Nepra that the province supported the tariff petition seeking recovery of Rs1.10 per unit in net hydel profit from the consumers.
