Payment pending to the Independent Power Producers (IPPs) has reached to Rs 439 billion as on February 15th, said sources. It may be noted that the government was applauded for clearing Rs 480 billion circular debt when it came into power in 2013, but it is likely to leave behind almost the same amount for the next government.
This may also be a source of concerns for the electricity consumers since winters are near to end and they would have to bear the brunt of this inefficiency of the government that has failed to retire the outstanding dues to 57 power companies. According to details, Kot Adu Power Company Limited is to receive Rs 68,177 million, The Hub Power Company Limited is to get Rs 64,194 million, Central Power Generation Co Ltd is to receive Rs 62,796 million. Northern Power Generation Co Ltd is to get Rs 56,747 million, WAPDA Hydroelectric is to receive Rs 23,853 million, and Jamshoro Power Company Limited is to get Rs 18,288 million.
These are just few big receivables while many other companies are also awaiting their dues to be cleared. The total amount is Rs 439,141 million. It is pertinent to mention here that the current government cleared Rs 480 billion circular debt of the energy sector when the circular debt stood at Rs 503bn on May 31, 2013.
The power companies had to opt for calling of sovereign guarantee to get this heavy circular debt cleared in past and government has to pay Rs 480 billion to IPPs. Some of the IPPs were in the Supreme Court once the government defaulted in honouring of the sovereign guarantee.
The IPPs had agreed to withdraw cases and resolve the dispute through arbitration envisaged under the power-purchase agreements as part of a deal with PML-N government for payment of outstanding dues of 480 billion at that time. Situation is getting there again and GOP has to honour its Sovereign guarantee otherwise all invest in power sector will become shaky.