June 10, 2002	Monday	Rabi-ul-Awwal 28,1423

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ISLAMABAD, June 9: The Water and Power Development Authority (Wapda) has failed to achieve the line loss reduction target agreed to with the National Electric Power Regulatory Authority (Nepra) for fiscal year 2001-02.

The Nepra sources told Dawn that the Wapda has now requested that the same target of bringing down the line losses to 23 per cent be rolled over for another year, to be achieved during the fiscal 2002-03.

“We are concerned over the dismal performance of Wapda viz-a-viz loss reduction and as a matter of principle it should return the increase in tariff to consumers because the very basis on which increase was approved did not materialise”, said a Nepra official.

The official, however, said that all parties to the tariff petition, including consumers and the utility, would be given passionate hearing to present their facts and figures and arguments before the regulator comes out with its final tariff determination.

There has been a lot of consultation between the donors and the Nepra on how to help Wapda achieve its annual financial targets in the recent months.

The Nepra had allowed Wapda to increase its tariff in June last year on the condition that it would bring down the line losses to 23 per cent by the end of fiscal 2001-02. Current line losses are estimated at 24.2 per cent as reported by the Wapda in its tariff petition pending with the Nepra.

Its one per cent losses translate into Rs2.4 billion. This means that around Rs58 billion Wapda revenues are going down the drain just because of losses. The Wapda officials claim that the main reason why loss reduction target could not be achieved was the non-availability of funding to improve transmission system.

“Such losses cannot be acceptable as a cause of increase in tariff for the honest and paying consumers. The Wapda is expected to improve its performance and reduce its losses to at least 23 per cent at the end of year 2002,” stated the Nepra’s last year judgment.

The Nepra is scheduling to start public hearing of Wapda’s petition for 88 paisa per unit increase in consumer tariff in the third week of this month in Lahore and Islamabad.

About 13.9 billion units amounting to approximately Rs28 billion were lost through technical faults and pilferage which was more than the annual production of Tarbela power station during the year 1999-2000.

Considering half of the losses as technical losses, about seven billion units worth Rs14 billion related to theft. This loss amounted to 1.3 times the annual production of Mangla power station, said the Nepra.

The Nepra sources also pointed out that the Wapda’s payments to independent power producers (IPPs) would also increase to Rs69 billion during the fiscal year 2002-03 against last year’s payments of Rs64 billion.

Provincial governments, various federal ministries, particularly the commerce ministry and planning commission and various consumer groups are preparing to oppose Wapda bid for 88 paisa per unit increase in consumer tariff later this month.