PAC body told power Cos have to recover Rs869b

ISLAMABAD: The Power Division Wednesday told the Public Accounts Committee (PAC) Subcommittee that the power companies have to recover over Rs869 billion from the different power defaulters, and the Circular Debt of the Power Sector is Rs861 billion while Power Holding Private Limited (PHPL) owes Rs804 billion.The Power Division also informed the PAC Subcommittee that the matter of issuance of Islamic Sukuk bonds fort the further payment of Circular Debt of Rs200 billion would also be resolved soon.The meeting of the PAC Subcommittee was held with the chair of its convener Senator Shibli Faraz in which the Power Division gave a briefing on the power line losses, power distribution system and on the circular debt of the power sector.While giving briefing, Power Division Secretary Irfan Ali told the Subcommittee that resolution of all the issues of the power sector could only be resolved with political support and with de-politicised power sector.He told the committee that with bringing the improvement in the recovery system, an additional revenue of Rs229 billion was availed and out of it Rs118 billion, through electricity tariffs and Rs111 billion through reforms and improvement in recovery mechanism.Power Division Secretary, Irfan Ali, told the PAC Subcommittee that a detailed IMF programme to finish the Circular Debt by December 2020 under which the power distribution companies recover their defaulted amounts to end the circular debt.While giving detail of the committee on replacing the tube wells in Balochistan on solar energy, the Power secretary said a Saudi company has been invited to install solar stations of 50MW in three districts and to link these with national grid to provide the electricity to agriculturists but the power on cheaper rate through solar system as it was expensive to produce the power through solar system.CPPA MD Abid Lodhi told the Subcommittee that CPPA, with the consultation of the Power Division, has suggested changes in the law of Standers cost and wheeling laws as the Power Division did not increase the power tariffs for consumers utilising 300 unites since 2012 while the Power Division also wanted to end of front load in tariff.He told the committee that in last five years, sale of units of electricity were increased from 71 billion units to 91 billion units, but the focus of the CPPA was a growth in Industrial Sector which was not seen.He further told the committee that CPPA will get the trading licensee from July 2021 as the Power generation companies after the year 20121 will start the projects with the distribution companies and the power generation companies will not start any projects directly with CPPA and only the distribution companies will provide their guarantees

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