Power division recommends forensic audit to determine authenticity of report.
Byline: Fawad Yousafzai
Islamabad -- Raising questions to Mohammad Ali Committee report on power sector, the Power division has recommended forensic audit to objectively assess findings of the report, it is learnt reliably here. In response Mohammad Ali Committee Report's options to deals with IPPs and their additional profitability, the power division has recommended two options to the Cabinet Committee on Energy for pursual, official source told The Nation.
Cabinet Committee on Energy (CCE) had requested the Power Division to provide input on the report and present the way forward to the CCE in the near future. The Power Division has examined the report with focus on the sections discussing IPPs Profitability and the section dealing with Circular Debt.
The findings of the report can be broadly defined under two headings: a) Misrepresentation by IPPs to NEPRA b) Systemic errors in tariff determinations and tariff component frequency by NEPRA The report also deals with individual IPPs and their additional profitability on various counts. The report gives two Options to the Federal Govt.
Which includes option 1; a negotiated settlement is the preferred option which will require engagement of all stakeholders with a view to arrive at an agreement. In option 2 it was proposed that the Federal Government can undertake a forensic audit of all companies with a view to establishing further wrongdoing: which were not identifiable under the scope of this Report.
The power division in...
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