MULTAN: An official document reveals the Multan Electric and Power Company (Mepco) made an additional payment of Rs133.88 million to an industrial unit in violation of a contract signed between both parties, Dawn has learnt.

Power distributing companies offered the private sector to generate and supply electricity to distributors and in 2009, the Pakistan Electric Power Company drafted a policy framework for New-Captive Power Producers (N-CPPs) which was endorsed by the federal ministry of water and power.

M/s Roomi Fabrics Limited (RFL) sent a letter to chief operating officer of the Central Power Purchasing Agency (CPPA) and an agreement between the Mepco and RFL was signed for the purchase of 10.5 megawatt.

According to the official document, the Power Acquisition Request (PAR) of Mepco for purchase of electricity from the RFL was submitted to National Energy and Power Regularity Authority (Nepra) and tariff in this regard was determined by Nepra on Jan 27, 2014.

It stated that as per clause (15.30) of the approved PAR, Nepra directed Mepco to adjust payments, if any, made to the RFL from the date of supply of electricity but instead of recovering Rs106 million

It stated that in Mepco, the adjustment of an amount of Rs106 million in excess due to tariff difference from tariff determined by Nepra was required to be recovered but the same was not done.

“Contrary to this, an additional payment of Rs27.88 million vide payment voucher No 106 dated Oct 11, 2017 was made to M/s Roomi Fabrics in violation of the contract clause-D of the PPA,” it stated.

The matter was taken up with the Mepco administration in May 2018 and also was reported to the ministry over which the administration informed that the payment of Rs27.88 million was made in the light of the Lahore High Court Multan Bench’s decision after getting the bang guarantee of Rs83.652 million while there was no mentioning of Rs106 million which were paid in excess due to tariff difference from the tariff determined by Nepra.

Source said Mepco authorities did not take action against the industrial unit despite it stepped back from the court’s direction to resolve the issue by arbitration in the same decision.

A spokesperson for Mepco said the payment was made on the direction of the LHC.

“I am not in a position to comment on the issue anymore as the matter is subjudice,” he added.

Published in Dawn, October 17th, 2020

Opinion

In defamation’s name

In defamation’s name

It provides yet more proof that the undergirding logic of public authority in Pakistan is legal and extra-legal coercion rather than legitimised consent.

Editorial

Mercury rising
Updated 27 May, 2024

Mercury rising

Each of the country's leaders is equally responsible for the deep pit Pakistan seems to have fallen into.
Antibiotic overuse
27 May, 2024

Antibiotic overuse

ANTIMICROBIAL resistance is an escalating crisis claiming some 700,000 lives annually in Pakistan. It is the third...
World Cup team
27 May, 2024

World Cup team

PAKISTAN waited until the very end to name their T20 World Cup squad. Even then, there was last-minute drama. Four...
ICJ rebuke
Updated 26 May, 2024

ICJ rebuke

The reason for Israel’s criminal behaviour is that it is protected by its powerful Western friends.
Hot spells
26 May, 2024

Hot spells

WITH Pakistan already dealing with a heatwave that has affected 26 districts since May 21, word from the climate...
Defiant stance
26 May, 2024

Defiant stance

AT a time when the country is in talks with the IMF for a medium-term loan crucial to bolstering the fragile ...