Committee Pushes NEPRA to Clear Hydel Profit Arrears
The Senate Standing Committee on Power convened at the Parliament House under the chairmanship of Senator Mohsin Aziz, holding detailed discussions on key energy projects, including the 207 MW Madyan and 88 MW Gabral hydropower schemes in Khyber Pakhtunkhwa (KP).
KP’s Special Assistant on Energy told the committee that land valued at Rs 5 billion had already been purchased for the projects and that notable physical and financial progress had been achieved. However, the federal government had removed both from the Integrated Generation Capacity Expansion Plan (IGCEP).
Federal Minister for Power, Awais Ahmad Leghari, clarified that KP had not fully presented the CCI-approved power policy and argued that quoting a single clause without context was misleading. He warned that adding such projects could raise electricity costs by Rs 6 per unit by 2034. Leghari further said that 8,000–10,000 MW worth of schemes, including several CPEC ventures, were removed from the plan to avoid burdening consumers.
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The Minister also briefed the committee on financial reforms, noting that agreements with five independent power producers (IPPs) had been terminated, while others were renegotiated, saving an estimated Rs 3.4 trillion over the next few years. Distribution company losses had also been reduced by Rs 191 billion this year.
Members reviewed policies on captive power plants, imported coal and LNG projects, and the protected consumer category. The Power Division’s secretary confirmed a review is underway, with subsidies for those using up to 200 units. The Chairman urged introducing multiple slab rates to protect consumers from steep tariff hikes.
The committee also debated Net Hydel Profit (NHP). NEPRA claimed payments were being made, but KP officials said amounts were inadequate and arrears were growing. The committee recommended NEPRA clear the backlog and pay at least Rs 5 billion per month to KP.
On wheeling charges, Leghari said NEPRA’s rules had been amended, reducing the standard rate from Rs 28 to a base rate of Rs 12, pending final approval. Regarding the high return on investment for some IPPs — reportedly up to 100% — NEPRA cited dollar-based payments. The committee sought the last five balance sheets of these plants for review.
