LAHORE: The power sector’s receivables increased by a staggering Rs92.24 billion to Rs503.257bn from Rs411.013bn during the first nine months of the current fiscal year. The amount works out to be Rs9bn per month or Rs300m a day.

Interestingly, the Ministry of Water and Power which runs the power sector is also a defaulter of Rs1.458bn.

According to figures released by the Pakistan Electric Power Company (Pepco), the ministry’s dues, which stood at Rs1.099bn in June last year, increased to Rs1.45bn in March.

During the June-March period of the financial year 2013-14 (FY14), power distribution companies issued bills worth Rs722.10bn but could recover only Rs631.90bn, adding Rs90.23bn to the receivables. The recoveries dropped to 87.50 per cent.

The federal government’s default rose by Rs4.10bn to Rs8.623bn from Rs4.595bn. Its departments were billed Rs28.949bn, but they paid Rs24.921bn.

The provincial governments paid only Rs26.041bn against bills of Rs36.629bn, taking their total default from Rs74bn to Rs86.569bn.

The AJK government consumed electricity worth Rs14.36bn during March-June FY14, but paid only Rs3.03bn. Its total default rose from Rs24.011bn to Rs35.33bn.

Domestic consumers in Fata consumed electricity amounting to Rs11.288bn, but paid only Rs0.042bn. Their total dues swelled from Rs20.28bn to Rs31.534bn.

More than 50pc increase in default came from the private sector.

During March-June FY14, the private sector consumers received bills worth Rs594.932bn, but cleared Rs540.419bn, adding Rs54.51bn to the default tally. Their default rose from Rs281.503bn to Rs336.016bn.

The K-Electric (Formerly Karachi Electric Supply Company) is the single largest defaulter with Rs10bn. Its default amount rose from Rs26.755bn in June last year to Rs36.68bn in March.

“At the heart of the current power crisis lies the sector’s failure to recover outstanding bills,” a former Pepco chairman said.

About 2,700MW of plants are lying idle for want of money and fuel. This failure creates a vicious circle -- the sector cannot recover money, cannot pay for fuel, plants go offline, loadshedding increases and social chaos follows.

The seriousness with which the recovery drive is executed is evident from the very default of the owner of the sector – the water and power ministry. It is politically and morally embarrassing to see the ministry defaulting and yet claiming to be spearheading the recovery drive.