Payment for fuel supply: PSO accuses Pepco of violating agreement

The cash strapped Pakistan State Oil (PSO) has accused Pakistan Electric Power Company (Pepco) of violating agreement regarding cash payment of dues on account of fuel supply.
"Despite receivables of Rs 153 billion against different client mainly power sector, PSO is running its operations round the clock to serve the power sector," spokes person of PSO said adding as per directions of government of Pakistan, PSO is required to supply approximately 19000 metric tons on credit and 8000 metric tons on cash payment to Independent Power Producers (IPPs).
"The fuel quantity of 7000 metric tons that is supposed to be taken from PSO on cash on daily basis, Pepco is not being able to make the cash payments as per agreement and therefore, 7000 metric tons product is not being supplied," spokesperson said adding that PSO is not violating agreement and rather it is being blamed for shortfall of electricity where Pepco is to pay in advance for additional 7000 metric tons fuel.
She said that "PSO is fulfilling all agreements/directions of the concerned authorities and is supplying approximately 20,000 metric tons to power sector daily on credit terms. Hubco is being given 8000 metric tons, KESC 2000 metric tons, Gencos 1- 2 and 3 - 7000 metric tons and kapco 3000 metric tons.
"Pepco should not blame PSO for their own inefficiency/non payments/violation of the agreements," she said adding "PSO is fulfilling all agreements with power sector and is continuing supplies. The company has adequate levels of furnace oil stocks to manage all energy needs of the country.
As on March 18, 2011, PSO receivables against different clients stood at; Wapda Rs 39.9 billion, Hubco Rs 68.8 billion, Kapco Rs 27.26 billion, PIA Rs 1.28 billion, OGDC Rs 292 million, KESC Rs 2.05 billion, financial charges from PIA Rs 1.017 billion, price differential claims (PDC) on High Speed Diesel (HSD) Rs 1.382 billion and PDC on imported PMG Rs 4.75 billion. PSO's payables stand as: Parco Rs 27.8 billion, PRL Rs 11.8 billion, NRL Rs 9.5 billion, ARL Rs 34.3 billion and Bosicor Rs 4.69 billion.