April 8, 2003	Tuesday	Safar 5, 1424

ISLAMABAD, April 7: National Electric Power Regulatory Authority (Nepra) on Monday assured that around 20 independent power producers (IPPs) and 38 small power producers (SPPs) would be asked to pay electricity duty to the provincial governments when it issued them generation licences.

This assurance was extended by Nepra member Abdul Rahim Khan on the complaints of Punjab and Sindh governments during a day-long public hearing of three companies for generation licences. The 4-member Nepra bench, led by its vice chairman Sardar Mohammad Sharif, comprised Mansoor Elahi, Fazlullah Qureshi and Abdul Rahim.

The Punjab and Sindh governments earlier complained that IPPs were violating the provincial rules and regulations on many counts, including through non-payment of electricity duty at the rate of two paisa per unit.

Nepra was hearing petitions of three IPPs — Tapal Energy, Gul Ahmad Energy and Saba Power Generation Company — seeking generation licences.

A Punjab government representative Iftikhar Randhawa said that Nepra should keep in view the provinces concerns while finalizing the draft for generation licences and bind the IPPs to comply with provincial rules and regulations with regard to Electricity and Environment Act and Safety Standards.

Mr Randhawa said that some of the IPPs were not paying electricity duty and also not allowing the Punjab irrigation and power department’s representative to inspect the power plant, which was a violation of the relevant rules. He said that 38 SPPs and almost 19-20 IPPs were operating in Punjab, but most of them were not complying with rules and regulations.

Sindh’s representative also raised the same question and pleaded that the IPPs should be made to pay electricity duty to the provinces under terms of the generation licence and to follow provincial relevant rules.

Nepra Member Abdul Rahim Khan promised the two provinces that their opinions would be kept in mind while issuing new licences to IPPs.

Wapda representative Fazal Ahmad Khan insisted that the IPPs should not be allowed to sell electricity other than Wapda as all the IPPs were bound under the Power Purchase Agreement (PPA) to sell electricity to Wapda only.

He said the IPPs should be issued generation licences but it should be made binding on them to follow all rules and regulations relating to performance standards and environmental measures.