ISLAMABAD – Consumers paid an extra Rs167.787 billion (equivalent to Re. 0.7551 per unit) for expensive power generation due to the unavailability of the 969 MW Neelum Jhelum Hydropower Project (NJHP) from FY 2022-23 to FY 2024-25, a high-level committee chaired by the Federal Minister for Power revealed.
According to sources close to the Chairman WAPDA, the tariff for NJHP is structured on a take-and-pay basis, meaning the plant’s closure has not resulted in capacity payment charges for consumers. Additionally, funds raised through the Neelum Jhelum Surcharge (NJS) have been treated as grants, further reducing the project’s tariff impact.
However, the collapse of the headrace tunnel has forced reliance on costly power sources, leading to increased consumer tariffs. Following the incident, the Prime Minister established a high-level committee on July 14, 2024, to assess and mitigate the financial impact on consumers.
The committee, comprising key federal ministers and officials from NEPRA, WAPDA, and the Planning Commission, was tasked with:
Examining the tariff impact of frequent outages at NJHP due to structural issues since its commissioning.
Developing mechanisms to shield consumers from additional charges caused by design and construction flaws.
Reviewing the Power Purchase Agreement (PPA) template to ensure consumers are not penalized for shortcomings by power producers.
The committee held its first meeting on July 19, 2024, under the Federal Minister for Power. Discussions included input from the CEOs of CPPA-G and Neelum Jhelum Hydropower Company.
The committee’s findings underscore the urgent need for accountability and structural improvements in large-scale hydropower projects to prevent consumer burden and ensure uninterrupted power supply.
Story by Mushtaq Ghumman
