PESHAWAR, June 3: The Tribal Areas Electricity Supply Company is in financial crisis because of non-payment of dues by the consumers.

An official told Dawn on Saturday that the company’s dues against its domestic and commercial consumers in the Federally-Administered Tribal Areas had reached Rs57 billion.

He said Tesco’s monthly losses were about Rs971 million, while it has recovered only Rs27 million, which had plunged the company into a financial crisis, affecting its operation.

The official said Tesco largely depended on the Peshawar Electricity Supply Company for payment of salaries to its employees.

He said Tesco required Rs300 million per month for payment of salaries.

Officials said the company had stopped electrification of 168 villages in the tribal areas because local people had refused to allow installation of meters.

Hundreds of thousands of consumers in Fata have refused to pay power bills and install electricity meters.

NWFP Governor Ali Mohammad Jan Orakzai on Saturday directed the authorities concerned to develop small hydroelectric stations in Fata and the province to meet the increasing demand, said a handout.

Presiding over a joint meting of Tesco and Pesco here, he directed both the companies to encourage local investors in the sector.

He said Pesco and Tesco should conduct a detailed study of the issues confronted by them and their consumers so that they could ensure smooth supply of power and work more efficiently and effectively.

He said the report should be completed by the end of July.

The governor expressed concern over line losses and difficulties being faced by the genuine consumers.

He directed officials of the companies to seek viable solutions to put the things on right track.

The meeting was informed that both the companies had started loadshedding because of extraordinary demand for electricity, especially during the peak hours of heat.

Both the organisations were confronted with financial problems of severe nature because of line losses and they direly needed to be helped, the handout said.

The governor was told that Pesco was facing an extreme problem of line losses in Shabqadar area, which affected power supply to Mohmand Agency.

In a meeting of the board of directors of Tesco on Saturday, its Chairman Khalid Javed said all out efforts should be made to improve the financial position of the company.