Power plants urge SNGPL to harness its influence

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ISLAMABAD: Power generation plants have reportedly requested the Sui Northern Gas Pipelines Limited (SNGPL) to leverage its influence to recover payments from the Central Power Purchasing Agency-Guaranteed (CPPA-G), which have reached Rs 161 billion, sources told Business Recorder.

Out of the total Rs 161 billion, receivables against Guddu Power amount to Rs 29.606 billion, Nandipur Rs 9.214 billion, TPS Muzaffargarh Rs 1.360 billion, GTPS Faisalabad Rs 1.797 billion, GTPS Shahdra Rs 175 million, SPS Faisalabad Rs 92 million, and NGPS Multan Rs 56 million.

The total amount outstanding against WAPDA power plants stands at Rs 42.300 billion, of which Rs 10.479 billion are gas charges, Rs 306 million is GIDC (including LPS), and Rs 31.515 billion is LPS (gas charges).

The outstanding receivables for private power generation companies total Rs 27.585 billion. Of this amount, Rs 2.252 billion is against Kapco, Rs 1.214 billion against Engro Energy, Rs 19.569 billion against Liberty Power, Rs 1.421 billion against Orient Power, Rs 899 million against FKPCL, Rs 1.208 billion against Sapphire Power, Rs 845 million against Saif Power, Rs 88 million against Davis Energen, Rs 87 million against Halmore, and Rs 2 million against Altern Energy.

The outstanding receivables against QATPL stand at Rs 31.296 billion, NPPMC (Balloki) at Rs 31.667 billion, and NPPMC (HBS) at Rs 28.151 billion. The total outstanding receivables from GPPs amount to Rs 91.114 billion, with Rs 44.266 billion for gas charges and Rs 46.848 billion for LPS (gas charges).

Out of the total receivables of Rs 160.999 billion, the share of gas charges is Rs 74.972 billion, while Rs 85.339 billion is for LPS (gas charges).

In a letter to the CEO of CPPA-G, the General Manager (Recovery) of SNGPL stated that power plants have expressed their inability to pay outstanding dues to SNGPL due to non-release of amounts by CPPA-G. SNGPL has requested CPPA-G to take up the matter with the relevant authorities for the early resolution of the situation. “SNGPL is currently facing a severe financial crisis due to the huge outstanding amount of Rs 160.999 billion from the power sector, making it unable to fulfill its commitments towards upstream gas supplies,” SNGPL stated, adding that the current situation is detrimental to the overall financial stability of the company.c Given the severity of the issue, SNGPL has urged the CEO of CPPA-G to resolve the matter on top priority to prevent an international default by Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) concerning RLNG supplies.