Special
SAT Report
ISLAMABAD:
Electricity consumers in Pakistan are always told that they have to
pay more for power rates because either the fuel charges have gone
up or IMF-World Bank want more revenues. Many times the real reasons
are totally different and consumers are ripped off without being told
a word about it.
SAT has
obtained documents showing exactly how this happened in once case.
A bitter
war broke out early this year between the over-sized Water and Power
Development Authority (WAPDA) and the Pakistan Atomic Energy Commission
(PAEC), a sacred cow by all standards, over the rates WAPDA should
pay to purchase power produced by the Chinese-built Nuclear Power
Plant at Chasma (CHASNUPP).
According
to a letter written by the Chairman of WAPDA, Lt. Gen Zulfikar Ali
Khan, to General 
Musharraf
on Dec 15, 2001, a strong complaint was lodged against the PAEC which
was accused of making an unholy alliance with the Ministry of Finance,
to arbitrarily increase power rates to pay back PAEC loans. "This
is a bizarre argument," the WAPDA Chairman wrote, as according
to him, WAPDA, which meant the consumers of electricity, were not
supposed to pay for the loans of PAEC. "Who would pick up the
loans and liabilities of WAPDA," he asked candidly in his letter.
Click to View Letter Page1| Page2
The issue
he raised was that an agreement had been reached between WAPDA and
PAEC on power rates which was decided to be Rs 2.05/kWh, although
WAPDA had suggested a rate of Rs1.92/kWh which was the average rate
it paid for purchasing thermal power. Electricity produced at nuclear
power plants is supposed to be cheaper. But over the head of WAPDA,
PAEC approached the Chief Executive's Secretariat, called a meeting
of the Economic Coordination Committee (ECC) on Nov 26, 2001 and arbitrarily
fixed a rate of Rs 3.15/kWh, thus increasing WAPDA's burden by Rs
2.5 billion.
WAPDA
first started a media war with leaked reports in the Press against
the PAEC, which, in response, wrote to its ally, the Finance Ministry,
saying these things should not be discussed publicly as a strategic
partner, China, was involved. Click to View
PAEC Memo Page1 | Page2 Then WAPDA
Chairman could not hold his fire and wrote directly to General Musharraf's
Chief of Staff. "This extra burden," Lt General Zulfikar
Ali Khan admitted candidly, "would be passed on the consumers...
This increase has not only financial but legal and regulatory implications
for WAPDA."
All this
crossfire was going on without any one offering any public information
and it was obvious that the ultimate price of this war will have to
be paid in shape of more charges by the consumers of WAPDA.
The Chief
Executive Secretariat asked the Finance Ministry to mediate and another
meeting of the ECC was ordered in which both the Chairmen of WAPDA
and PAEC were asked to come and present their points of view. A summary
was issued on Feb 12, 2002 for this classic confrontation, face to
face. Click to read the Summary Page1 |
Page2 | Page3
But
by the time this new meeting could be held, enough pressure had
been put on the WAPDA Chairman to persuade him to back out in favour
of the more sensitive PAEC. Who cared if the consumers had to dish
out Rs 2.5 billion more. And who cared what excuse was given out
to the public for doing so.
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