Wapda is to mass disconnect power connections

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Minister of Water and Power have chaired a meeting on Wednesday, 21st Sep. Heads of all power distribution companies, which operate under Pakistan Electric Power Company (PEPCO), participated in the meeting. Meeting was intended for reviewing the running/circular dept and recoveries situation of power distributors.

Minister advised to mass disconnect the connections of consumers who are on default from last 60 or more days. He also advised to recover all the running debt in next 30 days. Running debt means when a certain consumer did not payed any full or partial charges with the approval of any of Power distribution company.

It was further told that if a certain Power distribution company will not be able to act accordingly in given time, they may have their contract canceled.

Current circular debt of PEPCO have reached Rs. 300 billion, this directly impacts the electricity consumers who are paying regularly in terms of load-shedding and the increased tariff. It was good initiative by minister to bring all kind of debts down.

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PEPCO unable to recover Rs 63 billion dues from last year

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Pakistan Electric Power Company (PEPCO) was unable to the recover Rs 62.9 billion Rs last year against amounts which were billed to its consumers. This amount added to the circular dept and will have an impact on the electricity consumers who actually pay their dues regularly.

Such unpaid dept contribute to the devalue an organization and such thing happened in financial year 2010-2o11. PEPCO was able to make some old recoveries but this Rs 63 billion of un-recovered amount is finally going to impact the household consumers of electricity, who are already mostly paying their bills regularly.

Circular Dept and line losses are the biggest problems of PEPCO which ultimately contribute to the increasing load-shedding which electricity consumers have to face. Circular dept of PEPCO already crossed 301 billion and increasing at ironical pace, all impact of this will be on people of Pakistan.

Reason for these recoveries not being done on time and increasing circular dept is told as their is no one in charge of finances at PEPCO and a very important position in this regard is vacant. Then again the “Ministry of Water and Power” have to appoint someone on that position but we are just witnessing another case of negligence from current administration of this country.

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