Outstanding dues: PSO halts supply to power companies
(Read more: PSO pleads for help again, Rs50 billion this time)
The power shortfall has reached 8,900 hundred megawatts across the country.
According to the Pakistan Electric Power Company (Pepco), power generation is only 7,500 megawatts while consumption is more than 17,000 seventeen megawatts.
Independent power producers (IPPs) have shut down their power plants due to the suspension of fuel.
Meanwhile, PSO has suspended the supply of oil to all government and private power companies due to the non-payment of bills on the due date.
Loadshedding hours have consequently been extended, resulting in protests across the country.
Prime Minister Yousaf Raza Gilani on Sunday called for a National Energy Conference to discuss the power crisis the country is facing currently.
The energy conference has been called to devise a strategy for overcoming loadshedding in the country as well as to look for new avenues for energy production.
PSO currently has Rs155 billion in outstanding receivables from its power sector clients, who have been unable to pay the company because the government in turn has been unable to keep pace on the payments it owes the power companies for the electricity subsidies that Islamabad has a habit of promising.
However, PSO’s government shareholders continue to compel the company to keep supplying oil to the independent power producers, despite the fact that the IPPs are well beyond their credit limits.
COMMENTS (15)
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We are Proud Pakistanis.... we have a solution to everything... how to destroy everything of-course!!!
@ ayesha. salute to your opinion & wisdom.
If you can't still see the Indo-US nexus to corner Pakistan starting from water-terrorism, media propaganda to black mailing on self-created Taliban issue, then God help you.
PSO should be thankful they get contracts for selling oil because of its affiliation with the government. In fact, they charge more than other oil companies.
It is easy to say ' Hum ghaas khayenge' but this is what it looks like - Not having enough money for fuel is just the beginning. If the US aid plus aid from US controlled organizations like IMF, World Bank and ADB stops thee will be other aspects of life that will be impacted.
I am not saying Pak should remain aid dependent but if the self reliance is not pursued in a time-bound manner and it is forced upon people, it is daily issues like this that will get exarcebated.
Dear Brothers! yet i fail to understand you including me, all sit on our computers writing but practically doing nothing. This callous government has to go now,
Dear Pakistanis, my brothers and sisters, enlighten me as to me how you are going to take on the mighty SuperPower USA, when you have 12 hour powercuts?
Slowly but surely darkness is falling upon Pakistan.
If the government spent less on defense, it would have the money to resolve the circular debt problem. Currently 50% of the taxes raised are spent on defence and around 40-45% on repaying prior debts. This prevents your government from a) Investing in social infrastructure such as healthcare and education 2) Power plants 3) Resolving issues such as circular debt 4) Build check dams and other reservoirs which can prevent flooding. On top of this since 95% is soaked up by debt repayment and defense, the government has to print money which results in inflation.
Unless and until you stop buying the lies that tells you about India's aggressive designs and demand that more of your taxes are spent on the welfare of Pakistani people rather than toys for Kayani and his boys, this situation will continue to worsen.
And frankly Pak defense expense also negatively affects India who also needs to divert money to defense which should really ideally be spent to provide more services to the poor Indians as well.
Fuel doesn't magically appear because people desire it -- you have to buy it - that goes for Pakistan as well. Economics makes the World go around and Pakistan's poor international image (both economically and politically) is having it's impact on things that you consider basics.
Shame on our government. This government has failed miserably to provide any type of relief to the helpless people of Pakistan..
yes, PSO is serving its biggest shareholder, the Government.
Load Shedding in Gujranwala, Sialkot & Gujrat is over 15 hours per day with continuous breakdown of 5 to 6 hours!!
We're suffering because of our incapable Government!!
Business is business. PSO has to be answerable to it's shareholders.
No money no oil......
It is due to most incompetent, selfish and corrupt government/politicians ever in the history of any country. They have ruined billions of rupee on rental power project established with malafide intention and for undue gains of favorites. The biggest State run Bank i.e. NBP has given birth to struck up finance approx. Rs.10 billion during this year.