Senate Tackles NHP Dispute with KP Today

Senate Tackles NHP Dispute with KP Today

| 11-Aug-2025

Islamabad, August 11, 2025, 03:39 PM PKT — The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, is convening today to unearth an ‘out-of-box’ solution for the persistent net hydel profit (NHP) dispute between the federal government and provinces, especially Khyber Pakhtunkhwa (KP), as reported by Business Recorder, amid escalating tensions. The Water and Power Development Authority (WAPDA) has stepped back, deferring to the Power Division and Central Power Purchasing Agency-Guaranteed (CPPA-G), while a separate committee under Planning Minister Ahsan Iqbal also probes the issue. After five meetings this year with all four provinces, the Ministry of Energy, and the Finance Division, the Ministry of Inter-Provincial Coordination will update on finalisation efforts.

Under Article 161(2) of the Constitution, the Council of Common Interests (CCI) sets NHP via the bus bar sale rate, but disputes over the Kazi Committee Methodology (KCM)—once yielding Rs6 billion annually to KP until FY15, then uncapped at Rs1.10 per kWh post-2016, rising to Rs1.155 per kWh in FY18—persist, with ad hoc payments and arbitration failing to resolve it. WAPDA claims no profit retention, treating NHP as a pass-through, but outstanding CPPA-G receivablesRs49.565 billion for KP and Rs114.584 billion for Punjab (including Rs13.617 billion in arrears)—delay disbursements. The Power Planning and Monitoring Company (PPMC) notes a shifted energy landscape since KCM’s 1985-86 formulation, suggesting federal budget or WAPDA profits fund NHP instead of consumers. Sindh pushes for provincial hydropower control via the Indus River System Authority (IRSA), supporting KP and Punjab’s claims but opposing tariff hikes. Web context on NHP disputes shows decade-long stalemates, while posts found on X reflect frustration—some demand fairness, others question resolution. Critically, the narrative of “innovative solution” may mask structural deadlock—web data hints at past failures, and X sentiment suggests distrust in effective reform, pointing to ongoing challenges.

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