ISLAMABAD-Terming the charging of Neelum Jhelum Surcharge to the consumers after December 2018 as unjustified, the Auditor General of Pakistan has recommended return/adjustment of Rs.5.816b in consumers’ forthcoming electricity bills.
The Neelum Jhelum Surcharge collected after December 28, 2018, the date of taking over of the NJP by WPADA, is violation of the decision of Economic Coordination Committee (ECC) of the Cabinet and may be returned to the eligible consumers/adjusted in their forthcoming electricity bills, said the Auditor General of Pakistan in its report. The cost of 969-megawatt run of the river Neelum-Jhelum Hydropower Project(NJHP) had increased from the initial estimates of Rs 130b in 2007 to Rs500b in 2018. The surcharge was imposed in 2007 for financing of NJHP with a sunset clause of Dec 31, 2015.However due to delay and cost overrun of the project the Re 0.10/unit surcharge was twice extended for a total of 30 months until July 1, 2018. The Economic Coordination Committee (ECC) of the Cabinet in its decision No.ECC-53/6/2021, dated February 19, 2021 removed Neelum Jhelum Surcharges (NJS) already imposed on electricity consumers @ Re.0.10 / unit for development of Neelum Jhelum Project from the date of taking over all units of Neelum Jhelum Projects by WAPDA.
In various DISCOs, the Neelum Jhelum Surcharge amounting to Rs.5,816.39 million was imposed on electricity bills of the consumers from December 18, 2018 to June 30, 2021. Subsequently the same was not adjusted in their forthcoming electricity bills. The violation of ECC decision had caused over billing to the consumers to the tune of Rs.5,816.39 million. According to details, HESCO had charged NJ surcharge of Rs 1214.62 million, MEPCO Rs 1,421 million, PESCO Rs 1,808.49 million, QESCO Rs 792.28 million and SEPCO Rs 580 million. According to the audit report, non-adherence to the ECC decision resulted into unjustified charging of Neelum Jhelum Surcharge amounting to Rs 5,816.39 million to the consumers up to the Financial Year 202-21. The matter was taken up with the management in July to September to October 2021 and reported to the Ministry in September and December 2021. The DAC in its meeting held in January, 2022 directed the PESCO management to implement ECC decision without further delay.