ISLAMABAD, Nov 5: Wapda’s corporate companies would challenge, in the courts, a decision of the National Electric Power Regulatory Authority (Nepra) that excluded industrial consumers of small power producers (SPPs) out of Wapda’s national grid system, sources told Dawn.

“Our legal experts are examining the distribution license granted by Nepra to the Islamabad Electric Supply Company (Iesco) and we would challenge some of its conditions in a court of law”, a Wapda representative was quoted as telling a high level inter- ministerial meeting here on Monday.

“Nepra and Wapda representatives were at daggers drawn on their respective positions but the minister has asked them to maintain a status quo”, a participant of the meeting disclosed.

Presided over by commerce and industries minister Abdul Razak Dawood, the meeting was attended by privatization minister Altaf M. Saleem besides federal secretaries of almost all the economic ministries and Nepra’s acting chairman Fazlullah Qureshi. Wapda was represented by a general manager and chief executive of Iesco Brig. Waseemul Zafar.

Wapda officials contended that SPPs had the right to generate electricity for themselves and their sister-units within the same vicinity but they could not distribute power to the nearby industrial units.

Wapda contended that it was loosing around Rs17 billion because of SPPs besides another Rs5 billion in subsidies to poor consumers.

Anwar Khalid, Wapda’s general manager believed that SPPs were required under the law to sell their surplus power through national grid and no SPP should be less than 30 KV of capacity.

Nepra side explained that none of the SPPs were lower than that capacity and in fact most of them produced around 1-MW power. SPPs could sell 25 per cent of their total generation to the adjoining consumers, the regulator maintained.

Wapda was told that Nepra had the power to grant licenses to SPPs and Wapda’s corporate companies and Wapda had no role whatsoever on that account. Nepra has already issued licenses to six SPPs for power distribution.

The commerce minister asked Wapda not to disconnect SPPs power to industrial consumers as it had done earlier with consumers of Maple Leaf and maintain a complete a status quo till such time Nepra takes a decision to issue a license or otherwise.

The representatives of the SPPs were assured that they would be allowed to operate normally without any harassment and Nepra would continue granting licenses to SPPs on a case to case basis.

The minister said that grant of licenses to Wapda’s companies and SPPs should be followed in an open, transparent, competition oriented and businessmen friendly power policy so that investment climate improved.

Wapda has been pleading that even playing field should be provided to it even if the SPPs are allowed to sell their surplus power and SPPs should also share the subsidies and the mix of power consumers.