MUZAFFARABAD, Aug 9: Azad Kashmir has rejected the recommendations of a federal government’s committee constituted by President Gen Pervez Musharraf to settle the tariff conflict between AJK and the Water and Power Development Authority, Dawn learnt from relevant sources here on Friday.

The committee, headed by Federal Minister for Kashmir and Northern Areas Affairs Abbas Sarfraz Khan, met in Islamabad on Friday to discuss the long pending issue and fixed the bulk tariff for Azad Kashmir at Rs3.49 per kwh, of which Rs2.44 are to be paid by the AJK government and the remaining Rs1.05 by the government of Pakistan as subsidy.

The meeting was attended among others by federal secretaries for KANA division, finance division and ministry of water and power, chairman Wapda, AJK secretary finance, AJK electricity department chief engineer and other senior officials from both sides.

The committee deliberated on the report of a technical sub-committee, headed by secretary KANA division, which had suggested that the bulk tariff for AJK should be fixed keeping in view the consumption pattern of the state and on the principle of “no profit no loss” as laid down by the federal cabinet in Dec 1996.

For the purpose of calculating power supply tariff for Azad Kashmir, the sub-committee had recommended that the average losses of Wapda should be taken into account, which were to the tune of 25 per cent.

After adjusting 25 per cent losses, the sub committee has worked out the bulk tariff at Rs2.82 per kwh. Of this per kwh tariff, the government of Azad Kashmir was to pay Rs2.01 while the remaining 81 paisas was to be picked up by the government of Pakistan as subsidy.

However, disagreeing with the recommendations of the technical sub committee, the main committee decided that the tariff for Azad Kashmir should be Rs3.49 per kwh.

An AJK official, who attended the meeting, told this correspondent that the new tariff was recommended for six months only. It would be revised after that period or if the National Electric Power Regulatory Authority (Nepra) increased the tariff before that.

“But this is not acceptable to us and we have conveyed our stand to the federal government functionaries,” he said.

The last bulk tariff approved by the chief executive for Azad Kashmir was Rs3.83 per kwh from beyond Feb 28, 2000. Of that tariff, Rs2.32 per unit are being paid by the AJK government and remaining 92 paisas by the government of Pakistan. However, this rate was increased to Rs4.20 due to raise in the power tariff effected by Nepra recently.

The AJK officials pleaded at the meeting that the state should be treated at par with the provinces and not as bulk consumer.

The average sale price of the AJK government, they said, was Rs2.01 per kwh (excluding the maintenance cost of 23 paisas) and therefore the tariff for Azad Kashmir should be on “no profit no loss” basis.