LAHORE, Oct 14: The power sector has slipped deeper into financial crisis in the first two months of the current fiscal with total collection dropping to 77 per cent, adding Rs35 billion to the receivables that now stand at a staggering Rs420 billion.

According to the latest official figures, the sector issued bills of Rs160.9 billion during July and August but could recover only Rs124 billion. During the corresponding period of last year the collection rate was 81.3 per cent.

In July, the total billing stood at Rs80 billion but Rs55.3 billion was recovered. In August, the bill went up to Rs80.9 billion and collection to Rs68.7 billion. The total receivables, thus, jumped from Rs385 billion to Rs420 billion.

The sector had accumulated receivables of Rs100 billion last year, having collected Rs612 billion from the billed amount of Rs712 billion. The average per month increase in the recoverable dues during the year was Rs8.33 billion that has more thandoubled to Rs17.5 billion for the first two months of 2012-13.

During 2010-11, the sector had billed Rs618 billion and recovered Rs556 billion — a loss of Rs62 billion at a monthly average of Rs5.16 billion.

“The pattern shows the sector is sinking deeper into financial crisis because no one is in charge and no one has ever been put on the chopping block for wreaking havoc with the national exchequer,” a former member of the Wapda said.

“The sector has been divided in recent years into the Pepco, National Transmission and Dispatch Company and Generation Holding Company, all of them being run by one man who has not been formally appointed for the past six months. Whom can the ministry hold accountable for the chaos, when the official put in charge holds no formal position?

“The man apparently does not take any decision because he cannot defend it if some affected individual or group goes to court because he is not formally appointed. There are personal whims ruling the sector, and costing the nation over Rs550 million a day in lost collection,” the former member of the Wapda said.—Ahmad Fraz Khan