Payment of dues: PEPCO gives KESC three-day deadline

KESC rejected claim of outstanding payments for power purchase.

KARACHI:

The Pakistan Electric Power Company (Pepco) has set a three-day deadline for the Karachi Electric Supply Company (KESC) for settling outstanding dues amounting to Rs28 billion, a claim rejected by KESC.

“Pepco Managing Director Rasool Bux Mahsood has asked me to give a three-day deadline to KESC starting Saturday for settlement of its outstanding dues. After that, the future course of action will be decided against KESC,” said a Pepco official.

According to Pepco, outstanding dues of KESC had accumulated to Rs71 billion, of which the company paid Rs43 billion. The less than due payments prompted Pepco to consider disconnecting power supply to KESC and if implemented, it would take at least 16 hours to reconnect as there is no system between the national grid and KESC from where power supply could be switched off, the Pepco official said. KESC receives 650 and 750 megawatts during normal and peak hours respectively.

On its part, KESC has rejected claims of outstanding dues payable to Pepco, except for May’s bill of Rs7.5 billion. For this amount, KESC said, the finance ministry has already taken the responsibility for payment as per mechanism defined in the Power Prchase Agreement.

KESC pays Rs44b including arrears

In a statement issued on Saturday, KESC claimed it had paid Rs44 billion to Pepco in the last four months compared to electricity purchase worth Rs33 billion in 10 months. “By paying extra money to the National Transmission and Dispatch Company (NTDC), KESC actually compensated for the arrears that were inherited from the previous management,” KESC said.

KESC said after the new management took over, it had purchased electricity worth Rs90 billion since October 2008 from NTDC. However, KESC has so far made payments for Rs96 billion.

The old outstanding dues that were absorbed at the time of KESC purchase were Rs29 billion. Under a government agreement, KESC was supposed to pay these dues in monthly installments of Rs400 million each. At present, the old outstanding amount stands at Rs16 billion.

KESC said it had not only been paying for electricity purchase to NTDC on a regular basis but also never missed any installment of old outstanding dues.

On the other hand, consumers and various organisations owe Rs60 billion to KESC while federal and provincial governments have to pay Rs31 billion.



Published in The Express Tribune, June 5^th, 2011.