LAHORE, May 29: Wapda’s demand for 24.65 per cent tariff increase from Nepra would bring it Rs52 billion during 16 months whereas its projected loss during the same period is only Rs25 billion.

In a letter to the National Electric Power Regulatory Authority (Nepra), the Institution of Electrical and Electronics Engineers Pakistan (IEEEP) on Wednesday opposed Wapda’s demand for tariff revision.

The letter claimed that Wapda, according to its petition planned to sell 45.12bn units. An increase of 88 paisa from 01-04- 02, as demanded by Wapda, would bring extra revenue of Rs9.926bn for the last four months of the current fiscal year.

During the next financial year, the sale of units would go up to 47.376bn and at an additional cost of 88 paisa would get Rs41.691bn — a combined income of Rs51.617bn during 16 months covered by the petition.

Whereas, during the same period, as claimed by the petition, Wapda would incur a total loss of Rs25bn. Why Wapda has chosen to ask for Rs27bn more, the letter questioned. Further explaining the situation, the letter claimed that Wapda is hiding its real losses and trying to dupe everybody. Its actual losses during the current year are estimated to Rs33bn.

Wapda has time and again claimed that it would suffer a loss of Rs40bn during the current financial year. Its Member (Power) is on the record claiming a loss of Rs32bn. It must be kept in mind that these official claims were made during the same period when petition was prepared. This makes the difference of claims even strange, the letter said.

The letter insisted that Wapda, without admitting its real loss, is trying to recover them clandestinely and anything filed on the basis of incorrect data must be rejected out-rightly. Placing the same for hearing would not lead to any useful conclusion, the IEEEP insisted.

The letter further said: “It may also be mentioned that Wapda, in its many press releases, had quoted expenditure of Rs202bn for the fiscal year 2001-2002. But, in its current petition, it had brought down the same to Rs174bn. Interestingly, this figure is less than what Wapda spent during the last fiscal year when independent power producers (IPPs) cost was around Rs86.7bn only. Now, on the one hand, petition speaks of spending Rs174.4bn on the IPPs and on the other hand revising total expense downwards. This further points out incorrect nature of the petition, the letter asserted.

Had Wapda been honest in its claims, it should have asked for only 42.6 paisa increase which could easily covered its current loss even if decided not to improve bill collections and recover arrears. But asking for 88 paisa increase bespeaks of the fact that it was trying to cover its real losses by duping every body.

The Nepra, however, is the best judge. But the IEEEP recommends that before placing the writ for hearing, Wapda’s balance sheet be put for scrutiny before professional auditors.