Ministry of Water and Power is reportedly facing the ire of National Electric Power Regulatory Authority (Nepra) for not improving recovery situation as per the benchmarks made part of tariff determinations for 2015-16.
According to the statistics submitted by the Ministry of Water and Power to the National Assembly receivables which stood at Rs 384.109 billion when PML (N) came into power, have reached Rs 637.797 billion by June 30, 2016, showing a growth of 66 percent.
An official told Business Recorder that the issue of receivables was the key concern of International Monetary Fund (IMF) during recent talks in Dubai.
Ministry of Water and Power has claimed that average Disos recovery has increased by 4.87 percent to 94.45 percent in 2015-16 against 89.58 percent in 2012-13. But the individual performance of four Discos is dismal.
According to Nepra, the recovery figure mentioned include both recoveries from private sector and the government and the Authority never disallowed the actual write offs against the private defaulters if due process of law was followed while writing off the receivables.
However, the write-off against receivables of any Government entity cannot be allowed considering the fact the Government is a “going concern”.
The official confirmed that the position of receivables in, KPK, Sindh and Balochistan is far worse than in other power Distribution Companies.
However, recovery area of Islamabad Electric Supply Company (Iesco) which is being offered for privatization through IPO in stock exchange is also not good.
Ministry of Water and Power has acknowledged that Iesco’s recovery performance has gone down by 3.49 percent in 2016 as compared to 2013.
In 2013, Iesco’s recovery stood at 94.44 percent which has declined to 90.95 percent. A comparison of figures indicates that Iesco’s receivables have increased by 156 percent from Rs 19.786 billion to Rs 50.628 billion of which Rs 45.275 billion are owed by the government entities.
Lesco’s receivables grew by 50 percent from Rs 31.658 billion to Rs 47.626 billion, Gepco’s by 76 percent from Rs 8.958 billion to Rs 15.636 billion, Mepco’s by 10 percent from Rs 24.947 billion to Rs 27501 billion, Pesco’s 44 percent from Rs 78.658 billion to Rs 113.338 billion, Tesco’s by 7.7 percent from Rs 29.529 billion to Rs 31.819 billion, Hesco’s by 70 percent from Rs 39.216 billion to Rs 66.525 billion, Sepco’s by 73 percent from Rs 62.793 billion to Rs 108.633 billion, Qesco’s 109 percent from Rs 80.533 billion from Rs 168.144 billion.
Ministry of Water and Power dismissed one Chief Executive Officer (CEO), Yousaf Awan on corruption charges, his predecessor who is the close relative of Speaker Punjab Assembly has also failed to improve recovery. Recently, CEO of Lesco and CEO of Hesco were also fired.
The Ministry further claims that recovery of Lesco increased by 1.35 percent from 97.85 percent in 2014- 13 to 99.30 percent in June 2015-16.
Gujranwala Electric Power Company’s (Gecpo) recovery increased by 1.16 percent, Fesco’s by 1 percent, Mepco’s by 8.23 percent, Pesco’s by 3.89 percent, Sepco’s by 1.4 percent and Qesco’s by 39.80 percent
Federal government had referred 341083 cases of domestic, commercial, industrial and agriculture defaulters to National Accountability Bureau (NAB) across Pakistan except Karachi to recover around Rs 300 billion but the recovery position is negligible.
At present, an amount of Rs 99.6 billion is outstanding against provincial governments of which Rs 73 billion relates to Sindh and Rs 19 billion to Khyber Pakhtunkhwa.
The government of KPK’s receivables include Rs 18.6 billion assessed for KPK consumers for the period September 5, 2008 to September 15, 2010 on account of a tariff differential subsidy after withdrawal of a KPK petition from Peshawar High Court (PHC).
However Pesco did not pass on Rs 18.6 billion to consumers. The sources said, Ministry of Water and Power has also requested the Ministry of Finance to deduct the reconciled arrears at source from the accounts of provinces in accordance with 25 percent agreed formula.
According to sources, the last deduction at source was exercised in March this year and another is due after reconciliation of figures.
The sources further stated that Sindh has given concurrence on clearing Rs 22 billion in arrears (reconciled amount), but Rs 4 billion remains un-reconciled. -Business Recorder