Rs81 bn collected from power sector defaulters in last eight months

ISLAMABAD: The government would not increase electricity tariff for households that are consuming electricity less than 300 units a month, and Rs230 billion would be allocated in upcoming budget 2019/20 to protect them from electricity price hike. However, for other categories, the National Electric Power Regulatory Authority (Nepra) would determine increase in tariff.

Federal Minister for Power Omar Ayub Khan said this on Friday while addressing news conference here. He said that Nepra had asked months ago to increase electricity rate by Rs3.84 per unit but PTI government raised Rs1.27 per unit. Khan said that the government had protected domestic consumers using 300 per month that constitute 75 percent of total consumers. He added that 95 percent commercial consumers had also been protected.

The same policy will continue after availing IMF’s bailout package and government would give Rs230 billion subsidy in budget, he said. There is zero power outage at 80 percent feeders, he said, and claimed that the government had collected Rs81 billion from power sector defaulters during last eight months. An amount of Rs10 billion has also been collected from defaulters of government departments.

In Tribal Electric Supply Company (Tesco), previously consumers were getting electricity for four hours but now, it is being supplied for 10.5 hours and there is no load shedding at time of Iftar and Sehri, he added.

He said The PML-N government had no will to bring improvement to the sector and had passed on Rs650 billion circular debt to PTI government. Of this, Rs450 billion they filed up on the nation in its last year of government aiming at winning elections. Despite the feeders were accumulating huge losses, but the PML-N government started supplying electricity to them for political gains and resultantly in one year, circular debt ballooned by huge Rs450 billion.

Omar Ayub said that currently, there is Rs38billion/month addition to the circular debt, which be reduced to Rs26 billion by June this year and to Rs8 billion by June next year and then bring further down to zero by December 2020.

Minister further said that till June 2020, we will collect Rs100 billion from defaulters and Rs200 billion from those involved in power theft. He added that power losses have been reduced by 1.8 per cent.

Minister appealed the masses to join hands in this Jihad against power theft on 1500 feeders that account for 20 per cent feeders by indentifying power theft and thieves.

At present, power sector is dependent on 60 percent imported fuel. He announced to increase share of electricity from local resources to 70 percent in 2030. He said that current share of renewable energy in total mix was 4 percent that would be increased to 20 percent in 2025 and 30 percent in 2030. He said that share of nuclear energy would be increased to 10 percent. This would help reduce foreign exchange, he said.

Omar Ayub also said that government was going to introduce new meters that would also be installed at transformers as well to address power theft. ‘The supply of electricity to any consumer involved in power theft would be suspended by pushing one button, he said adding that Iesco had floated tenders and Gepco was also going to invite bids to procure such meters.

Regarding the government’s drive against power theft, he said that 30,000 FIRs have been registered against power thieves. No defaulters would be allowed to walk away and even connections of Presidency and Prime Minister House would be disconnected over defaulting bills.

Minister further said that power distribution companies (Discos) had shortage of staff for patrolling so 950 to 1000 appointments would be made on merit in power companies. He further said that government had planned to split the power companies.

The government would allow Independent Power Producers (IPPs) to find out their own clients whose contracts were being expired. He said that government would not be bound to take electricity from them. Replying to question about offshore drilling, he said that government would continue efforts to drill more offshore well in the country.

Meanwhile, Prime Minister Imran Khan felicitated Omar Ayub. “I congratulate Omar Ayub and his whole team. Rs 81 billion increase in collection in 8 months. Rs 58 billion from theft control. 80 percent of the country free from load shedding. Zero load shedding at sehr and iftar. Keep up the good work. This is Naya Pakistan, “ the prime minister said in a message.

“Another Rs 120 bn to be recovered next year; flow of circular debt already reduced from Rs 38 bn per month to Rs 26 bn and to be zero by next December. Rs 100 bn Additional will be recovered from old receivables,” he added.