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May 23, 2018

Discos to recover Rs227.26 bn from energy defaulters: AGP


May 23, 2018

ISLAMABAD: The department of the Auditor General of Pakistan told the Public Accounts Committee on Tuesday that the power distribution companies have to still recover over Rs227.26 billion from energy defaulters, and so far only five percent out of the total amount has been recovered.

The meeting of the PAC was held with the chair of its Chairman Syed Khursheed Shah on Monday in which the audit paras relating to Power Division for the year 2016-17 were examined.

According to details given to Public Accounts Committee, the Fesco has to recover Rs4.5 million, Hesco Rs6.16 billion, Iesco Rs8.33 million, Lesco Rs790.54, Mepco Rs8.4 billion, Pesco Rs96.89 billion, Qesco Rs80.27 billion, Sepco Rs2.68 billion and Tesco Rs31.99 billion.

The officials of the Power Division blamed the provincial governments and local administrations for non-cooperation in recovering the amount from the energy defaulters. A member of the PAC, Dr Azra Fazal, angrily said making recovery is not the task of the provincial government but of the concerned distribution company.

“Who stops them to register the FIR against defaulters,” she asked. The Audit officials told the committee that unless and until, the issue of recovery from the energy defaulters is not resolved, the circular debt issue could not be settled and the load-shedding will also continue.

The PAC Member Syed Naveed Qamar inquired about the smart meter system. The officials replied that Rs700 million was given to one DISCO for this purpose but the system was not functional. To a query of the Chairman PAC Syed Khursheed Shah with regard to line losses of the Discos, the officials of the Power Division told the committee that the annual line losses of the Lesco are 11.8 percent, Fesco 10.24 percent, Mepco 15 percent, Gepco 10.3 percent, Pesco 21 percent, Hesco 18.5 percent, Sepco 19 percent and Qesco 17.4 percent.

The Chairman PAC, Syed Khursheed Shah, said one percent line loss means Rs 1 billion and the remarks of the Chairman PAC were endorsed by the officials of the Power Division. However, the PAC wing presented a letter to the Chairman PAC in which it was clearly mentioned that the one percent line loss means loss of Rs 12 billion. The Chairman angrily asked the officials of the Power Division for misguiding the PAC. He asked about the annual line and connection losses of the Lesco.

The officials replied that the annual losses of the Lesco were over Rs130 billion. The PAC member committee Mian Abdul Manan said in five years Rs500 billion has been wasted in line losses.

The Chairman PAC said the government is claiming that they have abolished load-shedding, while 10-hour long load-shedding is being carried out for the industries, and added countries cannot function with such kind of acts and attitude.

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