Performance worsened over past four years: distribution companies' receivables surge to Rs 402 billion

The performance of the power sector worsened during the past four years with receivables of distribution companies surging to Rs 402 billion in 2012 from Rs 183 billion in 2008, registering an increase of 119 percent, or Rs 237.04 billion.
The Ministry of Water and Power reportedly attributed non-payment by private consumers as well as department of federal and provincial governments, non-payment of bills by Azad Kashmir and Karachi Electric Supply Company, fuel cost adjustment stayed by the Peshawar high court and non-payment by Fata consumers as factors contributing to the dramatic rise in receivables of distribution companies.
An official of the Ministry of Finance said that the Ministry of Water and Power had failed to improve the performance of power sector in all areas and there had been a steady increase in line losses. The efficiency of power sector in transmission, distribution and recovery has not showed any improvement during the last four years and consequently heavy subsidy to the power sector is having serious repercussion on the budget deficit According to official figures, receivables of Lahore Electricity Company (Lesco) increased to Rs 34.548 billion in September 2012 from Rs 7.610 billion in March 2008, showing an increase of Rs 26.937 billion. The receivables of Hyderabad Electricity Supply Company and Sukkur Electric Power Company (Hesco/Sepco) have showed an increase of Rs 83.680 billion with the companies' total receivables going up from Rs 21 billion in 2008 to Rs 105.501 billion in 2012 followed by Rs 52 billion increase in receivables of Peshawar Electric Supply Company (Pesco) and Rs 51 billion of Quetta Electric Supply Company (Qesco).
The receivables of Pesco went up from Rs 19 billion in 2008 to Rs 52.874 billion in 2012 and outstanding dues of Qesco increased from Rs 9.212 billion to Rs 60.952 billion during the period under review. The data also showed that receivables of Gujranwala Electric Supply Company (Gepco) have jumped from Rs 1.920 billion in 2008 to Rs 9.2134 billion in 2012, showing an increase of Rs 7.293 billion while receivables of Faisalabad Electric Supply Company (Fesco) rose from Rs 2.371 billion in 2008 to Rs 9.560 billion in 2012, reflecting an increase of Rs 7.189 billion.
The outstanding receivables of Islamabad Electric Supply Company (Iesco) have gone up from Rs 3.334 billion in 2008 to Rs 18.037 billion in 2008, showing an increase of Rs 15.072 billion. Similarly, outstanding Multan Electric Power Company (Mepco) were Rs 5.033 billion in 2008 but increased to Rs 18.923 billion in 2012, registering an increase of Rs 13.890 billion. According to Ministry of Water and Power receivables of Karachi Electric Supply Company (KESC) increased from Rs 37.101 billion in 2008 to Rs 63.554 billion in 2012, showing an increase of Rs 26.453 billion in receivables during the past four years.