LAHORE: The debt of Pakistan Electric Power Company (Pepco) has soared above Rs350 billion this month as the company could not make enough recoveries from the government and private sector to prevent its debt from piling up, The Express Tribune has learnt.
According to documents, Pepco’s receivables stood at Rs345.969 billion by December 1, around Rs4 billion less than payables. Pepco, however, has paid Rs11.7 billion to Pakistan State Oil (PSO) this month and is expected to pay Rs5 billion to gas companies to get continuous supply to keep thermal power generation at maximum levels.
Improved power production from thermal sources will somewhat make up for the sharp fall in hydropower production due to annual canal closure for desilting.
Pepco officials believe that the company’s inter-corporate debt will increase further by the year-end as the documents do not have December figures, which may lead to increase in power shortage in coming days.
According to the documents, federal government departments owed Rs1.752 billion to Pepco by December 1 while government agencies had to pay Rs2.118 billion. The defence sector owed Rs1.604 billion.
In the first five months (July-November) of the current fiscal year, these sectors collectively paid Rs10.025 billion to Pepco against the bill of Rs10.419 billion.
Government departments and agencies of Punjab have total outstanding amount of Rs8.862 billion, which is payable to Pepco. In the first five months, they paid Rs3.781 billion against the bill of Rs7.272 billion.
Government departments and agencies of Khyber-Pakhtunkhwa, including Federally Administered Tribal Areas (Fata), owe Pepco Rs20.354 billion. The province had dues of Rs19.427 billion at the end of previous fiscal year in June and paid Rs0.917 billion against bills of Rs1.844 in the current fiscal year.
The highest amount is owed by government departments and agencies of Sindh, which have to pay Rs45.299 billion. The province released Rs4.410 billion in the current fiscal year against bills of Rs10.479 billion.
Balochistan government departments and agencies have dues of Rs6.176 billion and paid Rs0.435 billion against bills of Rs1.949 billion in the first five months of the current fiscal year.
Azad Jammu and Kashmir owes Rs12.664 billion and paid Rs1.497 billion in the first five months against dues of Rs4.273 billion. Rest of the dues of Rs9.888 billion was carried forward from the previous fiscal year.
Percentage of recovery from domestic consumers of Fata was the worst as Pepco could recover only Rs0.026 billion against bills of Rs5.981 billion in five months of the current fiscal year. Total dues of Fata stood at Rs16.326 billion.
Karachi Electric Supply Company (KESC) has total dues of Rs51.955 billion payable to Pepco. KESC has paid Rs11 billion in five months of the current fiscal year against bills of Rs22.060 billion. The amount carried forward from the previous fiscal year was Rs40.895 billion. Overall, both provincial and federal governments owe Pepco Rs172.931 billion whereas the private sector has to pay Rs171.671 billion. Independent power producers have to pay Rs0.182 billion.
Published in The Express Tribune, December 27th, 2011.
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And we expect foreign investments in energy sector given the state of owing debts? Shame on the federal and state govts!