ISLAMABAD, Oct 23: In a major policy decision, the National Electric Power Regulatory Authority (Nepra) has directed Wapda to charge power rates from Federally Administered Tribal Areas (Fata) on a par with normal domestic consumers in other parts of the country.

As part of eradication of cross-subsidies from electricity, special reduced rates available to Azad Kashmir had already been equalized with normal bulk power consumers, Wapda sources confirmed.

“Total annual budget of Fata is around Rs3.66 billion. As of end of August, Fata has to pay Rs5 billion to Wapda for the current year as per existing rates. The new rates notified by Nepra would increase Fata’s annual electricity bill to Rs12 billion”, a senior Wapda official informed Dawn on Tuesday.

In view of delicacy of the situation, Wapda has sought guidance from President General Pervez Musharraf whether or not to go ahead with implementation of Nepra decision and if yes, what should be the mechanism.

“Under an August 4 notification we have been directed by Nepra to charge Fata consumers on a par with other domestic consumers,” said the Wapda official.

In March this year, Nepra objected strongly to a federal government decision to write off around Rs26 billion public sector dues including those to Fata, Azad Kashmir and Sindh on the ground that this amount was being indirectly recovered from honest consumers through tariff increases. Last year, the finance ministry had to deduct at source even the poverty alleviation fund, development and other social sector funding from Fata following the non-payment of electricity dues by the political administration and strong protest by the NWFP governor to pay Fata dues out of provincial funds.

“Even then the full amount could not be recovered and the balance was shared by consumers, provincial government and the federal government,” said Wapda sources.

“But this has put both the federal government and Wapda in a difficult situation because the move can create law and order problem at a time Wapda was convincing tribesmen to pay bills at existing subsidized rates,” said the official.