Ministry to hand over cases to NAB

MUSHTAQ GHUMMAN

ISLAMABAD: Ministry of Water and Power has reportedly decided to hand over cases of millions of private sector defaulters to the National Accountability Bureau (NAB) whose receivables are over Rs 0.1 million and are due for more than one year, official sources told Business Recorder.

This decision was taken at a meeting of power Distribution Companies (Discos) presided over by Additional Secretary Incharge Younus Dagha.

The sources said receivables against private sector peaked at Rs 345 billion by December 2014 which is a serious concern for the government. Prime Minister, Nawaz Sharif has also taken serious note of slow recovery of receivables which is increasing the amount of circular debt every day.

Circular debt has crossed Rs 300 billion and according to National Electric Power Regulatory Authority (Nepra) is one of the key hurdles in new investment in power sector.

The sources said all receivables having age of one year are to be recovered by Discos at their level within two months. The Consumer Services Division (CSD) of each Disco will also submit a daily progress to General Manager (R&CO) for onward submission to the Ministry of Water and Power.

According to the sources the meeting presided over by the Additional Secretary Incharge decided receivables due for over one year and above Rs 0.1 million will be recovered through NAB.

Chief Executive Officers (CEOs) of Discos that are now facing severe pressure from the Ministry on recovery clarified to the meeting that verified lists are being prepared and notices have been issued.

Additional Secretary Incharge directed CEOs to send daily progress to the Ministry and GM (R&CO), the sources continued.

Chief Financial Officers (CFOs) have been directed to submit daily collection and remittance statement to GM (R&CO) for onward submission to the Ministry of Water and Power.

The meeting also discussed the issues related to payment to Small Power Plants (SPPs) and decided that SPPs may be made payment by CFO Pepco at Pepco level instead of Discos level.

Discos CEOs informed the meeting that commercial banks and other agencies that collect bills from consumers submit remittances with some delay. The meeting decided that agreements with banks and other bill collection agencies be revised so that the remittances be made promptly on daily basis.

The meeting also took stock of uncontrolled line losses, another major reason for the surging circular debt. Discos have been directed to carry out analysis of line losses through third party and submit report within two months to Nepra and Ministry of Water and Power.

The meeting directed Discos to replace defective meters within this month to ensure correct billing to consumers especially against government connections.

The target of adjustments given in MoU may be strictly followed and adjustments beyond target may be made after approval by the Ministry of Water and Power through GM (R&CO).

All CEOs were directed to bring meters to accessible height for reading through mobiles. Reading through mobiles may be completed as per target given in the meeting to each Disco.

Disciplinary action against poor performers, ie, 1 XEN and 5 SDOs in each Disco on quarterly basis may be intimated accordingly.

Discos have been directed that database of mobile no of Discos employees and customers may be provided as per target.