LAHORE: Power sector receivables continue to rise as bill collection fell down to 86.30 per cent in the first seven months of the current fiscal year from 93.60pc in the corresponding period of last fiscal year.

This difference of 7.30pc translated into an addition of Rs80bn to the receivables.

According to data of Pakistan Electric Power Company, the sector issued bills of Rs587.30bn in the first seven months, but only Rs507bn could be collected.

The sector’s total receivables have, therefore, rose from Rs411bn in June 2013 to Rs491.41bn.

These receivables came down by Rs20bn in December 2013 when the sector was able to collect Rs92.1bn against a billing of Rs73.20bn. But in the very next month, Rs10bn was added to the tally when it collected only Rs56bn against a billing of Rs66.80bn.

The worst collection month was July last year when distribution companies collected only Rs57bn against billing of Rs86.70bn, adding around Rs30bn to receivables.

The Karachi Electric Supply Company (now K-Electric) remains the single largest defaulter with Rs41.19bn. Its dues have gone up from Rs26.75bn in June last year to Rs41.19bn, with an average increase of Rs2bn a month.

The government of Azad Jammu Kashmir is the largest official defaulter, with its dues standing at Rs32.76bn — increasing from Rs23.61bn in June last year to current Rs32.76bn, or increasing by Rs1.3bn a month in the first seven months of the current fiscal year.

The provincial governments also added Rs22bn during the same period, taking their dues from Rs102.606bn to Rs124.603bn in first seven months.

The private default has gone up by a horrendous over Rs44bn in seven months, racing at an average of Rs6.2bn a month.

“The sector would continue to bleed, and bleed the country white as long as government does not bring in professional managements on all power sector companies, especially those of the distribution ones,” says a former head of the Pepco.

Meanwhile, the sector continues to suffer and cost national economy at a rate of Rs380 million a day.

The situation may worsen in the months ahead as temperature rises, and demand increases and so would be theft, inefficiency and corrupt practices in the bill collection system, he warned and added:

“The sooner it is taken care of, the better it would be. Otherwise, all efforts to improve it may get quickly neutralised as happened in the case of circular debt.

The government cleared Rs500 billion and it shortly passed Rs300bn within six months. By the end of this fiscal year, the government would be clearing Rs500bn, yet again, if it does not think right quickly.”