Abb Takk News

Circular Debt Crosses 1.2 Tr, Firms Told To Recover Arrears

Islamabad (November 16, 2018): As the total circular debt of the power sector is estimated to have crossed Rs1.2 trillion, the power division has set specific targets for distribution companies to recover arrears from previous bills and ensure 100pc recovery of current billing.

A meeting, presided over by Federal Power Minister Omer Ayub Khan on Friday, set targets for six distribution companies (Disco) for collection of Rs83bn of past bills and asked them to ensure 100pc recovery targets for current electricity billing.

The meeting was also attended by Nadeem Babar, chairman of the Energy Task Force appointed by the prime minister, and chief executives of the Pakistan Electric Power Company and Discos concerned.

The minister directed CEOs to end theft and illegal hooking of electricity and take strict action against those involved in it with the help of the Provincial Task Force established in Punjab and Khyber Pakhtunkhwa.Informed sources said that the total outstanding bills payable by consumers including public and private sector stood at about Rs870bn and that was the major reason for repeated increases in circular debt.

The power division also directed Discos to ensure that defaulters did not use electricity through hooking and operation must be intensified without any fear or favour.

The meeting warned that recoveries should be made against outstanding bills and there should be no overbilling or unfair means be adopted for achieving these targets.

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