The cash strapped Pakistan State Oil (PSO) has warned Pakistan Electric Power Company (Pepco) to discontinue fuel supplies from August 1, 2010 onwards, if L/Cs are not opened for furnace oil/HSD supplies for respective fortnights and GENCOs. PSO in its letter sent to MD Pepco Tahir Basharat Cheema said that receivables against Gencos/Pepcos stand at Rs 43.985 billion.
"Under the circumstances, you are requested to advise all Gencos to ensure timely submission of duly opened L/Cs to PSO for uninterrupted supplies, and clear outstanding amount of Rs 31,261 million (Overdue + Financial charges) on immediate basis," letter adds.
PSO said that it had been receiving partial or no L/Cs from Gencos for furnace oil/HSD supplies and only supplies via rails had been opened/received and that too not in a timely fashion and with frequent delays for many months whereas no L/Cs for by road supplies had been opened/received.
"Due to severe financial constraints, we are no longer in position to ensure uninterrupted supplies to Pepco/Gencos. Therefore from August 1, 2010 onwards, if L/Cs are not opened for Furnace Oil/HSD supplies for respective generation companies supplies will be discontinued," the letter added.