ISLAMABAD: The country’s power sector receivables have crossed Rs828.5 billion as of March 31, 2018 compared to Rs730 billion on June 30, 2017, showing an increase of over 13 per cent in nine months of the current fiscal year.

The poor collections from Discos’ consumers have led to piling up of circular debt, which according to Prime Minister Shahid Khaqan Abbasi has put the country’s financial viability at risk.

An official stated that the power sector machinery (Disco’s administration) is either collaborative with the private sector consumers or unable to recover the receivables.

“We are considering separating Discos’ administration and revenue departments aimed at expediting recovery without which the weak power system will collapse,” he added.

According to official documents, Discos’ collection has registered an 11 percent decline to Rs 789 billion during this period against billing of Rs 887.5 billion.

The volume of receivables against provinces has increased to Rs144 billion as of March 31, 2018 as compared to Rs115 billion on June 30, 2017, showing an increase of over 25 per cent. The total collection during this period stood at Rs 66.12 billion against billing of Rs 94.87 billion. The amount of receivables against Punjab increased from Rs1.63 billion to Rs3.68 billion. Collection from Punjab stood at Rs16.41 billion against billing of Rs 18.42 billion.

Outstanding receivables against KPK government were Rs20.36 billion by end-March 2018 as compared to Rs19.65 billion on June 30, 2017. The collection was Rs 4.02 billion in KPK against billing of Rs 4.86 billion. 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. The volume of receivables against Sindh was Rs6.09 billion as of March 30, 2017 compared to Rs1.35 billion on June 30, 2017. Collection in Sindh was Rs 10.66 billion against billing of Rs 15.36 billion.

Documents reveal an increase in AJ&K receivables to Rs 94.52 billion as compared to Rs 80.75 billion of which the share of the federal government was Rs0.40 billion because of continuous non-payment by the Azad Kashmir government.

The billing during first nine months of the current fiscal year reached Rs 17.49 billion of which collection stood at Rs 3.72 billion. The amount of receivables against the private sector increased to Rs615 billion from Rs554.8 billion as Discos failed to expedite recovery from the private sector. The volume of billing against the private sector was Rs754.5 billion from July 1, 2017 till end-March 2018 whereas collection stood at Rs 694.2 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 Rs69.33 billion against 650MW electricity supplied from the national grid as of March 31, 2018 against Rs 60.07 billion on June 30, 2017. Receivables against the federal government increased to Rs8.78 billion till March 31, 2018 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 billing against federal government stood at Rs 33.98 billion whereas collection was Rs 30.30 billion as on March 31, 2018. Prominently, collection from defence was Rs 11.53 billion against billing of Rs 13.43 billion. The volume of due amount from Balochistan on account of agri-tubewells reached Rs 220 billion till March 31, 2018 against Rs 185.30 billion as on June 30, 2017, posting an increase of about 19 per cent. Of this, the share of the federal government was Rs 21.89 billion, the Government of Balochistan’s share was Rs 18.52 billion and consumers share @ Rs 4000 per tubewells, was Rs 179.52 billion. The billing during the first nine months of the current fiscal year stood at Rs 38.66 billion whereas collection was only Rs 3.92 billion.—MUSHTAQ GHUMMAN