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Wapda offers 5.4 cents per unit buy-back power tariff to Hubco

RECORDER REPORT

KARACHI: The Water and Power Development Authority (Wapda) has offered 5.4 US cents per unit buy-back power tariff to Hubco in the last round of formal talks.

Hubco had come up with a kw/h levelled rate of over six cents. But Wapda has made a counter proposal of 5.4 cents during the round of discussion held on December 7 last, Member (Finance ) Wapda, Manzoor A Shaikh, told a press conference held here on Friday.

Nevertheless, Hubco had not replied to this offer so far, he said. Manzoor was of the view that the matter with the Kot Addu Power Company (Kapco) would be resolved once the tariff issue was settled with Hubco. National Power of UK is the strategic share holder of the 1490 mw Kapco whereas it holds 25 percent shares in the 1292 mw Hubco.

With the coming of all independent power projects (IPPs) in stream Wapda's payment bill would go up to Rs.35 billion including Hubco and Kapco. Of the total 16 IPPs five are already in commercial operation whereas five or six more would be on line by June next, he said.

Manzoor further clarified that Wapda's provisional profit of Rs12.4 billion is attributed, by some quarters, to Wapda's holding back of the payments to Hubco according to a court order. "We have earmarked Rs11.8 billion difference as contingency liability which would be posted as the ultimate court settlement comes," he said.

Javed Nizam, General Manager, Wapda, who accompanied Manzoor, said that Wapda's corporatisation would be completed by December 2000. The Wapda House would delegate all the so far centralized powers to the 12 power distribution and generation companies. Wapda has already established three power supply companies in Hyderabad, Faisalabad, and Peshawar. Besides, six more such companies would be created. Under the corporatisation plan three generation companies would also be established, he said.

He further said Wapda was also negotiating with the federal government to allow it to import furnace oil itself on account of its ever increasing bill. Nevertheless macro policies were involved in the matter relating to the development surcharge etc. Currently the federal government is solely authorised to import furnace oil through Pakistan State Oil (PSO).