ISLAMABAD: The Ministry of Water and Power and Finance has been unable to recover outstanding dues of electricity from federal and provincial governments as well as private sector amounting to Rs253 billion, creating serious financial problems for the power sector, it was learnt.

Sources told Business Recorder that the power sector had been unable to pay dues to Independent Power Plants (IPPs) and Rental Power Plants (RPPs), creating a yawning gap between billed amount and recoveries. The issue of receivables and payables of Pepco was discussed by the Cabinet Committee on energy after the Ministry of Water and Power sought immediate financing from the Ministry of Finance to enable Pakistan States Oil (PSO) to pay for fuel imports.

The meeting was informed that total receivables of Pepco from the private sector were more than Rs171 billion and from federal and provincial governments in addition to Rs82 billion from Azad Jammu and Kashmir and autonomous bodies, whereas total payables of Pepco touched Rs477 billion.

An official said that it was decided by the Cabinet Committee on Energy on June 18 this year that the Minister of Water and Power and the Petroleum Minister would meet the Chief Minister Sindh for payment of a major chunk of receivables. That meeting has not yet materialised.

Sources said that no progress has been made on payment of Pepco dues and the committee was informed that electricity receivables’ from the federal government stood at Rs5 billion, and AJK government and autonomous bodies at Rs8.7 billion. Pepco’s receivables from the Sindh government stood at Rs51 billion (a major chunk of Rs69 billion is payable by Sindh government), followed by Rs9.94 billion receivables from Punjab government, Rs6.27 billion from Balochistan government and Rs1.79 billion receivables on account of electricity from Khyber-Pakhtunkhwa government.

An official said that the Cabinet committee on energy had been identifying problems of power sector and various options to overcome them in every meeting. But, the official said, it failed to take any substantive measure to provide supply of gas to five power plants, improve low recoveries of around 83% against billed units and minimising line losses.