Advance payments: Southern Electric claims no wrongdoing

Company filed a Rs5b arbitration claim against WAPDA.

ISLAMABAD: Southern Electric Power Company Limited (Sepcol) in a statement issued here today has claimed that it faced discrimination soon after its inception which led to its delayed commercial operation date and a subsequent illegal termination notice which was withdrawn only after a forced compromise.

Sepcol says it has filed an arbitration claim against Wapda for over Rs5 billion for various discriminations and violation of the PPA by Wapda. This suit has been held in abeyance with the mutual consent of both parties and in the best interest of the nation as the country was, and remains, in dire need of electricity.

The statement further says that unable to meet its working capital requirements due to the aforesaid discrimination by Wapda, it was mutually agreed that all disputes/arbitration should be kept aside and Wpda would continue to provide the company with fuel payments in advance.

The statement says that the fuel advance is made against the Energy payments to be paid to the Company, hence the period of advance is only for 25 days. Every month the fuel advance is adjusted against the Energy invoice submitted by the Company for the electricity units generated and sold to Wapda during the month.

Published in The Express Tribune, June 20^th, 2012.