Zero tolerance: Qamar orders cut in power supply to defaulters

Government departments and private sector owe Rs220b to Pepco.

ISLAMABAD:

Federal Minister for Water and Power Syed Naveed Qamar has said the government is following a policy of zero tolerance against defaulters in an attempt to recover outstanding dues of Rs220 billion.

He said this while talking to the media after visiting the National Power Control Centre (NPCC) on Tuesday.

Qamar said all power companies had been directed to disconnect supply to both private and government defaulters without any discrimination.

“Those who will pay their bills will get electricity, otherwise they will be disconnected,” he said, adding power would not be supplied to the defaulters from the taxpayers’ money.

He said government departments, private parties and the Karachi Electric Supply Company (KESC) owed Rs220 billion to the Pakistan Electric Power Company (Pepco). “Pepco, as per an agreement, is supplying more than 650 megawatts to KESC but it will be stopped in case of non-payment.”

He said fuel purchase would be difficult in case of non-recovery of receivables, which would ultimately hit power generation.

Owing to the measures taken by the government, the gap between demand and supply of power had come down and power outages had been reduced, he said and rejected reports of protests in various parts of the country against long hours of outages. “The reality is that power supply has been disconnected due to non-payment of dues and the media should portray the true picture,” he said.

He said power generation had crossed 14,300 megawatts and the situation was comparatively better compared to previous years.

Pepco to be dissolved in June

Replying to a question on reforms in the power sector, Qamar said Pepco would be dissolved in June under the reforms process and responsibilities would be given to the distribution companies. To another question about expected increase in power tariff, he said the National Electric Power Regulatory Authority (Nepra) would decide about it.

He said power supply to tube wells in Islamabad had been disconnected because of non-payment. About rental power plants, he said two such plants were providing 171 megawatts of electricity and there was no plan to bring more plants.

He said NPCC was being equipped with modern technology and the project would be completed by December.

Presiding over a meeting of CEOs of power distribution companies during the day to review the recovery process and action taken against the defaulters, Qamar asked them to set up a special recovery cell in all companies.

Published in The Express Tribune, June 1^st, 2011.