MUSHTAQ GHUMMAN

ISLAMABAD: After years of disagreement on electricity bills authenticity, Federal Government and Sindh Government have finally agreed on Rs 28 billion as final settlement figure of electricity arrears, against the earlier figure of Rs 72 billion, which is 61 per cent less than the claims of Sindh-based power Distribution Companies (Discos), well informed sources in Energy Department Sindh told Business Recorder from Karachi.

This agreement, sources said, was finalised at a meeting of Sindh Energy Department, Pakistan Electric Power Company (Pepco) Hyderabad Electric Supply Company (Hesco), Sukkar Electric Power Company (Sepco) and representatives of Water and Power Ministry.

“All taxes and surcharges and other levies will be included in the settled figure of Rs 28 billion,” the sources added.

On August 30, 2016, Chief Minister Sindh, Syed Murad Ali Shah, met Minister for Water and Power, Khawaja Asif as a follow-up of his meeting with Prime Minister Nawaz Sharif.

Minister for Water and Power, who has been vocally very critical of Sindh’s government electricity arrears payment issue, and Chief Minister Sindh discussed all the issues in a very selective meeting and reached an informal agreement on the issue.

The sources said officials of Discos and Sindh government held marathon deliberations on the figures of outstanding arrears and consequently agreed on Rs 28 billion as final arrears for the last six years i.e. from 2010 to 2016.

According to sources, both the federal and provincial governments have also agreed that Automatic Meter Reading (AMR) system would be installed on all connections of Sindh government departments within two months to avoid any future controversy on bills.

Discos will also install ARM meters on Sindh Government housing colonies replacing bulk supply meters.

“We have also agreed that the Sindh government will clear electricity bills within 60 days on reading taken through AMR meters and if the agreement is not implemented, the federal adjuster will deduct the amount from the provincial accounts and pay the Discos,” the sources continued.

When contacted Secretary Water and Power, Younus Dagha confirmed that agreement between the federal and Sindh governments has been finalised and the settled amount was Rs 28 billion.

There was, however, no progress on other demands made by the Sindh Chief Minister which include establishment of a grid station at the expense of Sindh government with the provincial government willing to invest in the project from its own resources, and Sindh Transmission and Despatch Company will upgrade the grid station. “I have guaranteed 800-1000MW from renewable energy in Sindh prior to next general elections,” stated Sindh Chief Minister.

Sindh Chief Minister has identified three things: grid connectivity which Sindh government will do on its own, Nepra to give a new tariff, and Power Purchase Agreement (PPA) to be signed in September 2016.