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Apropos news item titled "Power shortfall touches 3,000MW" carried by Business Recorder on December 29, 2010 PSO clarifies that the Company is maintaining regular and uninterrupted supplies of fuel to the power sector as per the agreements with individual entities.
"The allegations by PEPCO about fuel supply being maintained between 16,000 to 18,000 tons/day do not reflect true picture. In actuality the Company has dispatched 23,126MTs on 28th December, as against the committed quantity of 23,000MTs, and the receipted quantity at power plants stood at 23,552MTs on 27th December. PSO reiterates that all supplies are being made in line with the schedule provided and agreed upon by PEPCO.
"It is worthwhile to mention that while the GENCOs are maintaining a month's inventory to meet the urgent demands of the power sector, the IPPs are failing to meet this requirement due to their own financial constraints.
"Additionally, the claim that Rs 26 billion was released to PSO as advance is incorrect. This payment was received in lieu of outstanding dues on part of PEPCO and was not part of any advance payments. This trench too was issued to P50 on special instructions of the Prime Minister and intervention of the Ministry of Petroleum and Natural Resources and Ministry of Finance to save PSO from impending default due to non-payment of the power sector. The total amount of receivables from power sector currently stands at Rs 134.5 billion. It is also important to note that despite these outstanding dues and mounting receivables, PSO is continuing to supply fuel to the power sector to generate power.
"Pakistan State Oil, as the largest energy company in the country is cognisant of its responsibilities and continues to meet the energy needs of the nation in a responsible and timely," the clarification concluded.

Copyright Business Recorder, 2010

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