ISLAMABAD: Though the Islamabad Electric Supply Company (Iesco) has made more than 100 per cent recoveries from private consumers, the government departments still owe over Rs38 billion to the company.

The top management of Iesco told a sub-committee of the National Assembly standing committee on water and power on Monday that Iesco had made 101 per cent recovery from the private consumers up to May 2015 and its line losses were within the permissible limits.

“Besides arrears of previous years, we have made more than 99 per cent recoveries this year,” Mohammad Yousuf Awan, the CEO Iesco, told the sub-committee.

The committee was informed that the AJK government owed around Rs35 billion to the company which were less likely to be cleared in the near future.

Distribution company makes 100pc recoveries from private consumers

“Both the AJK and federal governments have developed some serious and complicated dispute,” an official of the ministry of water and power said.

“Besides refusing to accept high tariff, the AJK government has also claim over Mangla dam royalty. It’s a complicated case,” he added.

Apart from the AJK government, the federal government and its departments have to clear around Rs3.3 billion bills.

The operation area of Iesco includes Rawalpindi division, Islamabad district and the AJK.

“The CDA has recently cleared around Rs500 million but it still owes around Rs1.40 billion for the electricity supplied to Islamabad city and federal government installations such as the Presidency, PM house and office, parliament, etc.,” said an official of Iesco talking to media after the meeting.

He said around 100 government offices had defaulted on Iesco bills - two cantonment boards of Rawalpindi owes Rs500 million to the company, PWD Rs25 million and two main federal government hospitals of Islamabad around Rs20 million.

“There are numerous departments who have to clear small dues like Rs2 million by the National Highway Authority (NHA),” the official added.

“Many bills are cleared as the financial year closes but most of them get stuck after minor objections from any quarter,” he added.

The Iesco official said around Rs138 million were outstanding against the Punjab government, but it released Rs57 million on Monday and promised to clear the rest soon.

“The Punjab government departments will release payments to Pakistan Electric Power Company (Pepco) by July 1 but it will be transferred to the distribution companies’ accounts, including Iesco, in four to five working days,” the official added.

“But the problem is with the federal government departments as they are slow in clearing their dues,” the official added.

In his briefing to the subcommittee, the CEO Iesco said out of the 10 distribution companies in the country, Iesco was the best performing entity with only 9.4 per cent line losses.

Line losses of Hyderabad Electric Supply Company stand at 30 per cent, Lahore Electric Supply Company 12 per cent and Faisalabad Electric Supply Company 10 per cent.

“One reason for the minimum line losses is because Iesco mainly caters to urban areas,” the chairman of the committee commented, which was acknowledged by the Iesco officials, who even said most of the 18 transformers stolen in the current year were in the Attock district.

Published in Dawn, June 30th, 2015

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