xPakistan's energy chief quits amid controversy over tariff

The decision included a Rs3.03 per unit fuel-based increase in power tariff and rejection of the power ministry’s request to consider Rs47,000 per ton as reference fuel price, instead of Rs67,000 per ton. - File photo

ISLAMABAD: Amid an ongoing legal controversy over electricity tariffs, National Electric Power Regulatory Authority’s chairman Khalid Saeed submitted his resignation to the prime minister on Monday.

Nepra Registrar Syed Safir Hussain confirmed that Mr Saeed had tendered his resignation for personal reasons. He claimed that since Mr Saeed’s appointment order became effective on Jan 1, 2009, his four-year tenure, under Section 3(5) of the Nepra Act, was to end on Dec 31 this year.

He tried to dispel a perception about the legality of regulatory decisions taken by Nepra since Feb 15 this year on the basis of expiry of Mr Saeed’s tenure and said the decisions had been taken by a duly constituted authority, including the chairman and members.

Mr Saeed will continue to work as chairman till the acceptance of his resignation by the prime minister’s secretariat, the registrar added.

Mr Khalid Saeed could not be contacted at his office or residence.

According to the ministry of water and power and the law ministry, Mr Saeed’s tenure had expired on Feb 15, 2012. The notification No 41/209/2003-E-1, issued by the cabinet division on Feb 15, 2008, said: “Mr Khalid Saeed, a BS-22 officer of the secretariat group, presently principal secretary to the prime minister, is transferred and appointed as chairman, National Electric Power Regulatory Authority (Nepra) with immediate effect.”

The notification said he would continue to hold the additional charge of the principal secretary to the prime minister till further orders.

When the PPP-led government came to power, it appointed a fresh principal secretary to the prime minister and Mr Saeed continued to act as the Nepra chairman. Under that notification, his tenure stood completed on Feb 15.

Nepra’s member Sindh and Vice Chairman Khwaja Maqbool Ahmad had resigned in January this year after writing dissenting notes on some of the determinations on power tariff even though his second tenure was to expire in November next year. Mr Habibullah Khilji has since been appointed Nepra member to represent Sindh.

Sources said the government was unhappy over determination of fuel price adjustments on electricity bills that power companies started recovering from consumers with retrospective effect, leading to court cases as angry consumers resorted to protests.

The sources said Nepra had issued determinations in almost one month having a total impact of over Rs40 billion when Khalid Saeed was performing duties as Nepra chairman.

An official in the ministry of water and power said it would need a legal opinion about legality of these determinations.

The decision included a Rs3.03 per unit fuel-based increase in power tariff and rejection of the power ministry’s request to consider Rs47,000 per ton as reference fuel price, instead of Rs67,000 per ton.