Fighting losses: ‘Strategy made to recover power dues from defaulters’

Provinces, federal govt, private consumers owe Rs580b to power ministry, says state minister Abid Sher Ali.

PESHAWAR:

A strategy has been formulated to recover unpaid bills from defaulters who have caused billions of rupees in losses to the power sector, said Minister of State for Water and Power Abid Sher Ali on Thursday.

‘Breakdown’

Addressing a news conference at the head office of the Peshawar Electric Supply Company (Pesco), Ali said the federal and provincial governments owe Rs380 billion to the state ministry, while private consumers owe Rs200 billion.



According to Ali, Khyber-Pakhtunkhwa government has defaulted on Rs20 billion, Balochistan Rs110 billion and the Sindh government owes Rs69 billion. Similarly, K-Electric in Karachi has defaulted on Rs32 billion and the Federal Board of Revenue has to cough up Rs52 billion.

Ali added the federal government gives a subsidy of Rs49 billion and Rs40 billion to Azad Jammu and Kashmir and the Federally Administered Tribal Areas (Fata), respectively.

The minister further said the Water and Power Ministry has to pay Rs298 billion to Pakistan State Oil (PSO), independent power producers (IPP) and other electricity sellers with which the government is doing business. “The power sector works as a chain; we have to pay the PSO and IPPs. Defaulters affect the entire chain but fingers are always pointed at us,” said Ali.

Taking a stand

The minister said his office has requested the prime minister to look into subsidies being given by the federal government to various regions and consider discontinuing them.

Ali added the PM has formed a coordination committee over unpaid dues and the Water and Power Ministry has sought a meeting with Balochistan chief minister to discuss payment of Rs110 billion owed for tube wells operating under the provincial government.

“We have also sent a letter to the finance ministry to resolve the issue of dues with the FBR,” he said.

Speaking about the power theft Pesco is facing, Ali said four out of the utility’s six circles have been defaulting while 121 feeders are running on losses, affecting not just the province but the country as well.

“Areas where people are protesting against power outages are the worst in terms of bill payment,” said Ali, adding he has directed Pesco’s management to negotiate with local jirgas and convince them to enter the country’s billing network.

He further said meters will be installed in bulk on feeders and consumers will have to pay for the amount of electricity they use. “Some 50,000 meters are defective; Pesco will replace them within a month.”

The minister added Pesco’s superintending engineers will hold open kacheris in their areas from Monday to address consumers’ complaints. According to Ali, the PM has approved a relief package for K-P’s residents in the power sector, but he did not divulge any more details.

Full steam ahead

Talking about the electricity crisis in the country, Ali said 1,500 to 1,800 megawatts will be added to the national grid by May 15. “Liquefied Natural Gas (LNG) is being imported and an LNG terminal has been constructed in Karachi with the help of Engro. This will help in operating gas-run power generation plants at full capacity, adding 1,000-2,000 megawatts more to the system,” said Ali.

The minister was peeved over a question about overbilling and corruption in Pesco and asked the media to serve as a mediator between the utility and the people.

Ali also prayed for the victims of Army Public School attack before embarking on his remaining visit to Peshawar. He told journalists he will visit some of the victims’ houses and meet their families.

Published in The Express Tribune, January 30^th, 2015.