News
Saturday, October 23, 2010
SC asks NEPRA to explain hike in power tariff
* Court directs PEPCO, WAPDA to produce record of agreements with companies for setting up RPPs
Staff Report
ISLAMABAD: The Supreme Court on Friday issued notices to the National Electric Power Regulatory Authority chairman over increase in power tariff, while senior officials of Pakistan Electric Power Company and Water and Power Development Authority were also issued notices to produce records of all agreements regarding setting up of rental power plants (RPPs).
The respondents have been directed to appear in person or through their counsels on the next hearing on October 26.
A three-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday resumed hearing of a suo motu case regarding allegations of corruption in the contract of RPPs and the government’s decision to increase power tariff, especially when power supply was irregular. Khawaja Tariq Rahim, counsel for the Water and Power Ministry and PEPCO, had been asked to furnish the details of constitutional and legal chief executives of the RPPs so they could not say they were not heard in the case. The court directed the Water and Power Ministry’s secretary and all other concerned who had in any way participated in awarding contracts to the RPPs to appear before it. The WAPDA additional secretary and NEPRA chairman were directed to send notices to the rental power companies.
During the hearing, it was transpired that Genco, not the Pakistan government, had given sovereign guarantees to RPPs. Anwar Kamal, who is assisting the court in the case, also confirmed the fact.
Shahid Hamid advocate, on behalf of Walter Power International Naudero I and II, told the court that David Walter, the Walter Power International CEO, was the major shareholder of the company. He said he was a foreigner doing business in Pakistan but living in the US. Khawaja Asif, another petitioner, informed the court that David was a governor of one of the US states, but had been impeached on corruption charges.
PML-Q lawmaker Faisal Saleh Hayat, who is also a petitioner, confessed before the court that RPPs installed during his tenure in office had not yielded desired results, thus action be taken in this regard. He said NEPRA had allowed installation of the plants, which had passed their operational life, alleging that NEPRA had not performed its functions according to the law.
Courtesy www.dailytimes.com.pk
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