ISLAMABAD, April 27: The government of Azad Jammu and Kashmir (AJK) has decided not to sign the proposed protocol with the Water and Development Authority (Wapda) on raising of Mangla Dam project until the dispute over electricity tariff is settled.
Raja Farooq Haider Khan, special assistant to the AJK prime minister, told newsmen here on Sunday that some basic issues were impeding signing of the agreement without which physical work on raising of Mangla Dam project would remain in doldrums.
The AJK government demands that Wapda instead of charging on bulk tariff basis should supply electricity at the same rates as those applied in Pakistan.
The AJK government also expects a fair share from net profits earned from Mangla Dam admissible under the 1973 Constitution and already implemented in case of the NWFP.
In AJK, electricity is distributed through its own network at the average tariff rate of Rs2.24kw but Wapda insists on selling it at Rs4.20kw on the basis of allowable tariff and pattern of consumption.
In 1996, it was decided that Wapda will supply electricity to AJK on no-profit no-loss basis and the tariff till June 1998 would be Rs1.16kw. However, Wapda started arbitrarily raising the tariff after 1998.
Besides, while Wapda operates and maintains distribution network in provinces, the AJK government incurs a sum of Rs250 million on the operation and maintenance of its network.
Wapda chairman instead of accepting the AJK government demand deducted an amount of Rs1,400 million at source from the state council funds.
The state government claims that Wapda has been over-charging between 3,000 to 4,000 million rupees since 1999 and is now further demanding payment of additional Rs1,500 million.
The issue of arbitrary increase in tariff was settled by a committee constituted by the Pakistan government which recommended, and duly approved by president on Sept 26, 2002, that the rate be frozen at Rs2.32kw for one year. However, the AJK official complained, the paper containing the decision was detached from the minutes of the meeting and, therefore, not implemented.
Raja Farooq said the Pakistan government had, under a landmark agreement in 1967, committed that “Pakistan will meet the requirements of power of AJK which will, as far as possible receive preference but consumers in the territory will be treated on the terms of equality with consumers in the province of West Pakistan (defunct).”
Under the arbitrarily enforced tariff regime, the AJK government is forced to face abnormal deficit in receipts from consumers and Wapda.
