Workshop on power sector: electricity shortage attributed to rising circular debt

30 Jun, 2011

The US Agency for International Development (USAID) has expressed serious concern over the alarming rise in the inter-circular debt of energy sector due to which consumers are not being supplied power.
"Until cash flow through the electric power system from the consumer to the fuel supplier is adequate to cover all power system costs, the system will not be able to attract investments, address load shedding, improve services, and eliminate dependence on government subsidies," said USAID Director Dick Dumford at a two-day workshop, arranged for senior management officials of eight power sector distribution companies (discos) on June 28-29 to introduce the latest international best practices in strategic planning and change management.
The workshop was organised as part of US commitment to support the government of Pakistan in reforming the energy sector and addressing power shortages in the country. The US implements assistance programs, which also support completion of dams, renovation of power plants, and introduction of more efficient technologies to reduce energy use in the agriculture sector. The workshop focused on the ways to improve disco operations, which will lead to increased revenues and better customer services.
USAID argues that assisting discos to improve their commercial performance will ultimately improve the financial health of the entire power sector of Pakistan. Specialists from Iesco (Islamabad), Pesco (Peshawar), Mepco (Multan), Gepco (Gujranwala), Fesco (Faisalabad), Lesco (Lahore), Hesco (Hyderabad), and Qesco (Quetta) attended the workshop. The training was led by international experts in strategic planning and change management, and was sponsored by USAID.

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