Power sector receivables have touched a whopping high of Rs 581.320 billion, of which private sector is a major defaulter after Sindh and AJK governments. Official documents available with Business Recorder reveal that the amount of power sector receivables stood at Rs 512.909 billion as on June 30, 2014, but during the first four months of the current fiscal year, ie, from July 1 to 31 October 2014, the amount has touched Rs 581.320 billion mark, showing an increase of 13 per cent.
The documents further disclose that power sector’s collection was Rs 357.724 billion during the first four months of the current fiscal year against the billing of Rs 425.926 billion, showing a 16 per cent less collection as compared to the billing.
Private sector, which is considered as top defaulter, was to pay Rs 398.856 billion as on October 31, 2014. The amount against private sector as on June 30, 2014 was Rs 355.630 billion. This shows that receivables have increased by 12 per cent.
During the first four months, different power Distribution Companies (Discos) billed the private sector Rs 359.686 billion, but collection came to Rs 357.724 billion. Ministry of Water and Power and other top public offices know that private sector cannot afford to block payment to Discos, but in connivance with Discos’ officials, the collection of receivables remains far below the billed amount.
The federal government and its attached departments were to pay Rs 8.755 billion as on October 31, 2014 which were Rs 6.098 billion till June 30, 2014. Receivables against the federal government departments were to the tune of Rs 1.31 billion; local bodies under federal government Rs 2.495 billion; autonomous bodies under federal government Rs 1.692 billion; Defence Rs 1.627 billion; and Water and Power Ministry Rs 1.810 billion.
Azad Jammu and Kashmir government’s payables have increased to Rs 44.185 billion as on October 31, 2014 from Rs 37.969 billion till June 30, 2014.
Interestingly, billing against AJ&K was of Rs 7.491 billion during the first four months of the current fiscal year of which a payment of Rs 1.279 billion was made to Islamabad Electric Supply Company so far.
AJ&K government has already refused to pay current tariff notified by the federal government; it is insisting on a special tariff. AJ&K Prime Minister, Chaudhry Abdul Majeed, recently met Prime Minister Nawaz Sharif and raised the issue.
The amount of receivables against Sindh government has reached Rs 63.289 billion as on October 31, 2014 against Rs 56.341 billion till June 30, 2014. Hyderabad Electric Supply Company (Hesco) and Sukkar Electric Power Company (Sepco) sent bills of Rs 9.862 billion during first four months, but collection stood at Rs 2.915 billion. Both Hesco and Sepco are top loss making companies.
The Punjab has to pay Rs 4.845 billion as on October 31, 2014 against Rs 2.906 billion till June 30, 2014. Discos sent bills of Rs 8.046 billion to Punjab government departments of which collection remained at Rs 6.119 billion. KPK was to pay Rs 20.723 billion and Balochistan Rs 7.334 billion.
Receivables against Federally Administrated Tribal Areas (FATA) stood at Rs 39.355 billion. K-Electric has to pay about 28 billion.
SOURCE: RECORDER REPORT