ISLAMABAD, April 24: In the midst of a severe energy crisis, Wapda on Tuesday demanded an immediate payment of over Rs95 billion chronic receivables by the public sector to ease its financial constraints which aggravated power outages across the country.
The demand was made at a meeting presided over by Prime Minister Shaukat Aziz to discuss the energy crisis and Wapda’s financial problems. It was attended by Water and Power Minister Liaquat Ali Jatoi, PM’s adviser on finance Dr Salman Shah, secretaries of finance and power and chairmen of Nepra and Wapda.
“Wapda’s total receivables have crossed the Rs134.3 billion mark, but Rs95 billion is stuck up with the public sector for a long time,” said a senior official, adding that the remaining Rs40 billion or so kept on rolling on quarterly basis. As a result, Wapda has not been able to clear payments to independent power producers that have accumulated to Rs16.5 billion in the first week of April. The power utility also finds it difficult to repair some of its problematic plants.
The meeting has decided to implement from May 1 a demand management plan which will include early closure of businesses, staggering of working shifts and holidays in the industrial sector, use of energy saving techniques, prioritisation of consumers for loadshedding, etc. Final contours of the plan would be finalised by the weekend and the prime minister would convey another meeting on Monday for final approval and implementation of the energy conservation plan.
The power shortage this year is likely to hit 2,300mw.
The ministry of water and power blamed Wapda for unscheduled maintenance of power plants resulting in non-availability of many power plants at one-time causing capacity constraints in power generation. “Not discussed” was the answer when asked if the meeting also discussed why capacity addition in the public sector was not allowed over the last few years despite Wapda’s requests.
An official said the ministry of water and power was doing its best to keep the loadshedding at the minimum possible level but it had no control when the public sector dues were not cleared. “Wapda’s plants are not repaired in time and the government vetoes proposals to set up power plants in the public sector.”
Officials said that of the total Rs134.3 billion Wapda dues, Fata alone owed Rs61.5 billion, followed by Rs18 billion of the Karachi Electric Supply Corporation and Rs20 billion or so pending against various ministries, public sector organisations and provincial governments. Another Rs18 billion was the price differential the government had committed to picking up as subsidy a few months ago but was yet to be paid to the utility, they added.
