Staff Report
ISLAMABAD:
National Electric Power Regulatory Authority has taken serious notice of change in the minimum load limit of two Independent Power Plants namely AES Lalpir and PakGen and sought reports from the concerned within seven days.
Well-informed sources told that NEPRA has sought report from Central Power Purchasing Agency (CPPA) regarding the load position, settlement agreement of both power plants, comments of National Power Control Center NPCC), authority of CPPA over making changes in the agreements, interim permission about the minimum load, and impact of setting minimum load of these two power plants.
Sources said that former Managing Director (MD) of National Transmission and Despatch Company (NTDC) Dr Khawaja Riffat Ullah has declared these changes in agreements of these power plants as contrary to the regulations and it would cause annual burden of Rs 15 billion on the masses while CPPA claimed Rs 19 billion annual savings due to these changes in the agreements. They said that ex-MD NTDC, Dr Khawaja Riffat Ullah had signed the summary of changes in agreements as member of CPPA board. They said CPPA prior to making changes in the agreements did not consult concerned stakeholders regarding legal and technical and financial issues of NPCC. They said former General Manager System Operation Muhammad Ayub had shared only operational comments while he did not agree with the changes in Power Purchase Agreement. GM (SO) also recommended consulting all stakeholders, said sources.
The sources also said that a study was also done by an independent consultant prior to operational comments and opinion was given to CPPA on the report of consultant after consulting the engineers of NTDC. And, CPPA without getting approval of the federal government declared these changes as favourable in the larger interests of the country.
It is also learnt from sources that national exchequer will bear heavy loss of approximately Rs 15 billion per anum heavy loss due to increase in the minimum load of AES Lalpir and PakGen from 20 percent to 50pc. They said that due to increase in the minimum load of the two power plants named as AES Lalpir and PakGen, purchase of expansive electricity from these two power plants was made necessary while power production from cheap power plants were stopped. They said after the issuance of such guidelines in violation of procedure, Board of Director of NTDC has approved promotion of General Manger, Muhammad Ayub and made MD, NTDC while the MD, NTDC Khawaja Riffat Hussain, who pointed out these violations, was transferred to Hyderabad. Chairman Board of Directors of NTDC, Naveed Ismail, GM, NTDC, Muhammad Ayub, Joint Secretary Power Division Ahmed Taimor Nasir and official of Central Power Purchasing Agency (CPPA) had played main role in benefitting the two IPPs named as AES Lalpir and PakGen, said sources.
Documents available with this scribe disclosed that CPPA had fixed minimum load of AES Lalpir and PakGen power plants from 20% to 50% in violation of the regulations while power purchase from AES Lalpir and PakGen was made necessary after setting the minimum load.
Former MD NTDC Dr Khawaja Riffat Ullah in his letter adopted that with increase in minimum load of AES Lalpir and PakGen power plants from 20% to 50%, power generation from cheaper power plants of coal, solar, gas and nuclear will be decreased while there will be increase in the power tariff and circular debt.
Sources also said that agreements with AES Lalpir and PakGen Power plants were signed in November 1999 and February 1998 under power Policy of 1994 with approval of ECC. And, CPPA adopted that changes in the agreements of said two power plants has benefitted the national exchequer with approximately Rs 19 billion while owners of these power plants will not have to pay Rs 15 billion in accordance with the decisions of international courts. Similarly, due to changes in the agreements of the two power plants, there will be Rs 10 billion decreases in the circular debt while there will be no interest payment over delay in payments of interest payments.
Ex-MD NTDC Dr Riffat Ullah has adopted that CPPA had got approval of these changes in the agreements of these two power plants in haste through circulation as this issue was not brought before the board. And, later he came to know that this action will cause annual Rs 15 bln burden on national exchequer and power consumers and later on he wrote letters to NEPRA and other concerned organizations.
