ISLAMABAD, June 26: The Water and Power Development Authority has decided to waive late payment surcharges of the public sector consumers who clear their principal outstanding amounts by June 29.

Wapda’s total public sector arrears stand at Rs52 billion, including late payment surcharge of around Rs12 billion, sources said. If they did not clear the principal amount by the deadline, they would be subjected to multiple surcharge and face power disconnections.

The decision was taken on Tuesday at Lahore in a meeting of chief executives of 12 corporate companies of Wapda, presided over by chairman of the utility. Accordingly, the government departments have been sent letters to clear their dues.

Wapda was of the view that it should recover as much of the dues from the public sector to meet its financial targets committed with the World Bank instead of showing them on the balance sheets of the companies.

Islamabad Electric Supply Company (IESCO) Chief Executive Brig Waseem Zafar told Dawn that his company would have to waive around Rs300 million late payment surcharge of the public sector institutions, including Kahuta Research Laboratories, Pakistan Ordnance Factories and ministries of defence and health.

He said the CEs’ conference had also decided to improve customer service.

In this regard, the IESCO has decided to establish two model substations in Rawalpindi and Islamabad with facilities like new vehicles, equipments and wireless system to immediately address public complaints.

Most of the employees at those stations would be recruited on contract.

He said that Punjab government had provided Rs100 million to IESCO for electrification of 50,000 villages.