ISLAMABAD: The overall system losses of Wapda’s distribution companies (Discos) have increased to 24 per cent — up by one per cent — from last year’s 23 per cent, according to official estimates.
Minister for Water and Power Syed Naveed Qamar, who chaired a meeting on Wednesday with heads of distribution companies to review progress on loss reduction and recovery of outstanding amounts, was informed that running default was increasing with every passing day owing to deferment of even current bills, instead of recovery of arrears.
The minister ordered “mass disconnections” of electricity to consumers who were in prolonged default for more than 60 days.
“Disconnect their supplies to ensure that at least paying customers are provided better electricity supply. Defaulters and regularly paying consumers should not be treated equally,” the minister was quoted as telling chief executives of Discos.
The minister told participants that the government had now decided to bring people from the private sector to lead distribution companies and change the existing culture.
The Pakistan Electric Power Company — the umbrella organisation of over 13 Discos — will stand dissolved on Oct 31, the minister said.
The meeting was informed that average losses in July and August this year had jumped to 23.9 per cent against 22.9 per cent during the same period last year. One per cent system loss translates into Rs6.5 billion. This meant that Wapda companies (KESC not included) were losing about Rs150 billion a year only because of system losses despite over 125 per cent increase in consumer tariff over the last 18 months, since March last year, in addition to direct transfer of fuel costs to consumers every month.
The minister viewed it as a deliberate attempt by elements within the distribution companies to defame the political government, an official who attended the meeting told Dawn. Mr Qamar warned the chief executives of stern action, including cancellation of their contracts, if they failed to ensure 100 per cent recovery of at least their running default from consumers within 30 days.
To the disappointment of the minister, the meeting was also informed that the amount of running default had also risen to Rs79 billion. The running default is defined as the amount outstanding for three to six months due to recovery of bills in installments as powerful consumers pay a paltry amount to keep electricity supplies and get remaining amounts postponed with the formal approval of distribution companies.
The meeting was also informed that total receivables of Wapda distribution companies had touched Rs300 billion. This included non-payments by provinces led by Sindh, federal government subsidies, lower tariffs in Azad Kashmir and tubewells in Balochistan and tribal region.
The sources said the minister gave a deadline of 30 days for full recovery of running defaults throughout the country except for Hyderabad and Sukkur Electric Supply Companies who will have 45 days to meet the target owing to floods.
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