ISLAMABAD: The country’s power sector receivables have soared to Rs800 billion as of September 2017 as compared to Rs729.9 billion on June 30, 2017, showing an increase over 9 per cent in just three months.

According to official documents, Discos’ collection has registered a 17.8 percent decline to Rs321.6 billion as of September 30, 2017 against billing of Rs391.16 billion during three months of current fiscal year 2017-18.

The volume of receivables against provinces has increased to Rs131.74 billion as of September 30, 2017 as compared to Rs115 billion on June 30, 2017. The amount of receivables against Punjab increased to Rs3.60 billion as compared to Rs1.63 billion whereas outstanding receivables against KPK government were Rs20.07 billion by end-September 2017 as compared to Rs19.65 billion on June 30, 2017.

This includes Rs18.6 billion assessed for KPK consumers for the period September 5, 2008 to September 15, 2010 on account of tariff differential after the withdrawal of KPK petition from the PHC. The assessed amount has not been passed on to consumers. The payment of these receivables has been linked with the mark-up on NHP arrears payable to KPK government as proposed by the province.

Likewise the volume of receivables against Sindh was Rs5.50 billion as of September 30, 2017 compared to Rs1.35 billion on June 30, 2017. The key reason of low receivables against Sindh was that Economic Coordination Committee (ECC) of the Cabinet had approved write-off of Rs50 billion to Sindh government. The amount of receivables against Balochistan was increased to Rs8.33 billion as of September 30, 2017 against Rs6.75 billion on June 30, 2017.

The documents reveal an increase in AJ&K receivables to Rs86.08 billion as compared to Rs 80.75 billion of which the share of federal government was Rs0.40 billion because of continuous non-payment by the Azad Kashmir government.

The amount of receivables against the private sector increased to Rs599 billion from Rs554.8 billion during this period as Discos have failed to expedite recovery from the private sector. The volume of billing against the private sector was Rs339.36 28 billion from July 1, 2017 till end-September whereas collection stood at Rs295.18 billion. Karachi Electric (KE) which is about to be handed over to M/s Shanghai Electric, a Chinese company, from Abraaj Group of the UAE, has dues amounting to Rs68.75 billion against 650MW electricity being taken from the national grid as of September 30, 2017 against Rs60.07 billion on June 30, 2017.

National Electric Power Regulatory Authority (Nepra) recently held public hearing on a federal government’s request for review in tariff determination of the company aimed at giving more concessions to KE which would lead to privatization of more power sector companies.

According to Pepco, KE receivables are to be reduced by Rs0.951 billion received in October 2017 as informed by Central Power Purchasing Agency Guaranteed (CPPA-G).

Receivables against the federal government have increased to Rs8.16 billion on September 30, 2017 against receivables of Rs4.88 billion ending June 2017. The federal government comprises federal government departments, local bodies under federal government, autonomous bodies under the federal government and water and power sector.

The documents further reveal that billing against federal government stood at Rs14.59 billion whereas collection was Rs11.30 billion as on September 30, 2017. Prominently, collection from defence was Rs4.07 billion against billing of Rs5.83 billion.—MUSHTAQ GHUMMAN