Federal, provincial, AJK govts owe Rs256.34bn to Discos

ISLAMABAD: The National Assembly was informed on Wednesday that the federal, provincial and AJK governments are defaulters of over Rs256.34 billion of the power distribution companies (DISCOs) till June 2024.

The reply came in response to a question from Jam Abdul Karim Bijar during the National Assembly Question-Hour. Bijar asked for the DISCO-wise details with arrears against the federal and provincial governments. According to the Power Division, out of total receivables of Rs256.34 billion, the federal government owes Rs47,811 billion, provincial governments Rs151.763 billion and the AJK government owes Rs56.71 billion for the year ending June 2024.

According to Disco wise details, LESCO receivables from federal government departments amounted to Rs6.673 billion, GEPCO’s Rs2.2826 billion, FESCO’s Rs1.725 billion, IESCO’s Rs14.137 billion, MEPCO’s Rs2.189 billion, PESCO’s Rs2.228 billion, HESCO’s Rs5.534 billion, SEPCO Rs9.134 billion, QESCO Rs2.4 billion and TESCO Rs967 million.

In the case of provincial government departments, out of the total receivables of Rs151.763 bn, LESCO’s receivables were Rs14.773 billion, GEPCO’s Rs8.884 billion, FESCO’s Rs3.816 billion, IESCO’s Rs2.032 billion, MEPCO’s Rs10.675billion, PESCO’s Rs23.988 billion, HESCO’s Rs20.604 billion, SEPCO’s Rs33.52 billion, QESCO’s Rs38.299 billion and TESCO’s Rs2.298 billion. In the case of AJK government departments, out of total receivables of Rs56.771 billion, GEPCO’s Rs4.290 billion, IESCO’s Rs45.352 billion and PESCO’s Rs7.120 billion.

The Power Division said that due to the sensitivity of some connections, DISCOs are not in a position to disconnect the power supply of these departments. However, they are issued notices for disconnection. It said that on June 11, 2024, the prime minister had directed all federal ministries/agencies /institutions to pay outstanding arrears immediately. The Power Division also directed DISCOs to ensure payment from defaulting departments. While giving the details of the steps taken by DISCOs to ensure recovery, the NA was informed that monthly reconciliations are conducted at the company level, and regular meetings are convened to facilitate their payment. Correspondence is also undertaken with relevant departments. However, disconnections are implemented as a final recourse.

The NEPRA, being an independent regulator, is responsible for safeguarding consumer interest and it does not allow the impact of under recoveries in consumer tariffs.