ISLAMABAD: The Ministry of Water and Power has developed a ‘Band it & Move it’ strategy to curtail line losses and improve the recovery of dues.

In her briefing to the committee on Energy Resource Rationalisation for the power sector on Saturday, Water and Power Secretary Nargis Sethi presented the overall status of receivable bills, electricity theft and revenue collection. This committee was formed by the prime minister and is headed by Finance Minister Ishaq Dar.

The committee decided that 8,900 feeders should be marked and the concerned distribution companies be given clear targets for curtailing line losses and improving the recovery of dues.

Power grid can’t cope with demand

The ministry will monitor the performance of distribution companies (Discos) while the committee will take appropriate action in the light of the results.

Line losses to be reduced, dues recovered

During the meeting, the Prime Minister’s Special Assistant on Water and Power Dr Musadik Malik also presented proposals for improving revenue recovery and talked about possible ways to curtail the problem of circular debt in the long run.

The meeting also decided to set targets for the installation of meters at the feeder and Disco -level. Dr Malik was made responsible for the implementation and monitoring process. The meeting also discussed incentives for better performance at the feeder and Disco-level.

The finance minister emphasised the need for a task force to ensure the recovery of outstanding dues.

The finance ministry, he said, was releasing subsidies for lifeline power consumers, but as far as receivables are concerned, it was the ministry’s responsibility to stop pilferage from the system.

Mr Dar directed Ms Sethi to quantify the factors not accounted for in determining the cost of production. The estimates should be credible and Nepra should be taken on board while calculating the actual cost of production, he said.

The finance minister has asked for a detailed briefing from the water and power secretary in the first week of August to develop a long-term strategy to improve the recovery of outstanding dues.

Published in Dawn, July 20th , 2014