ISLAMABAD - Ministry of Water and Power mismanagement burdened the consumers with Rs22 billion in last seven years and by operating Genco-3 at half of the capacity not only increased loadshedding but also caused billions of rupees economic loss.

This was revealed during the hearing filed by Northern Power Generation Company Limited (GENCO-3) for revised generation tariff.

With an installed capacity of 1921 MW, the company comprises of four units, Muzaffargarh (TPS Muzaffargarh), Natural Gas Power Station, Multan (NGPS, Multan), Steam Turbine Power Station, Faisalabad (SPS Faisalabad) and Gas Turbine Power Station, Faisalabad (GTPS Faisalabad). During the proceedings the company said that under present cost plus basis tariff, company incurred huge losses over 8 years.

The representatives also revealed that they were applying for the tariff after nine years. Why you come so late to us, while company incurred huge losses, the authority asked. The representatives said that as they were told by Nepra to conduct some technical tests of the plants, and they failed to carry out the tests they did not approached the authority. They admitted that due to this a loss of Rs.22 billion incurred which the consumers charged.

The representatives also admitted that despite decommissioning of two units they were still spending money from national exchequer on those sites just to get some good sale price. We have 150 staff members on one of the decommissioned site, as it is spread over 200 acres, representatives of NPCG said.

They further revealed that the government only operated them at less than half of the plants accumulative capacity.

Why the ministry of water and power not operated the plants at their full when the country has been facing a severe crunch of electricity. The answer came from the NPCG reps when they hinted about late payments.

“There is continuous late payment of the sold energy by CPPA/ NTDCL, which leads to inefficient working capital cycle causing fiscal constraints to NPGCL who, like an IPP, has no sovereign guarantee, and late payments render the Company unable to borrow the money from banks to supplement the deficit cash flow.

The authority gave ten days time for additional rational from the company for tariff hike and to stakeholders for any dissenting views.

However, sources believe that matter should be further investigated that why the existing plants were not operated at full and new plants were being commissioned at higher tariffs.

According to sources one unit of electricity produced from newly established solar power facility near Bahawalpur would cost around Rs21. According to the documents the revised unit price of NPCG’s five plants on expensive furnace oil ranges from Rs. 18.36 to Rs.20.