The Hub Power Company Limited (Hubco), with stocks to meet not more than 3 days'' requirements, has sought intervention of National Transmission and Dispatch Company (NTDC) to arrange funds to enable it to pay Pakistan State Oil (PSO) and thereby ensure smooth supply of fuel for power generation.
The PSO in a letter to Hubco on January 26, 2011 stated that to ensure uninterrupted supplies to Hubco, payment amounting to Rs 61.932 million (overdue+due+financial charges) should be made to PSO immediately, failing which PSO would not be in a position to ensure uninterrupted fuel supplies.
In response, Hubco in its letter sent to NTDC on January 27, 2011 stated: "Further to our earlier correspondence, we have received another letter dated January 26, 2011 from PSO wherein they are demanding the immediate settlement of their longstanding of Rs 65.57 billion from Hubco to ensure the uninterrupted fuel supplies.
"We want your immediate attention and serious consideration in order to arrange the required funds for Hubco, enabling us to meet the PSO demand so that the fuel supply and generation continue." The letter added that the fuel stocks at Hubco plant are below the required level and enough for 3 days'' generation under the current scenario.
Kot Adu Power Company Limited (Kapco) had warned the Water and Power Development Authority (Wapda) that it would face an untoward situation if it failed to meet contractual obligations to arrange the payment of Rs 48.599 million on urgent basis which would then be paid to PSO. PSO in its letter sent to power plant Kapco on January 26, 2011 had maintained that "in order to ensure uninterrupted supplies to Kapco outstanding payment amounting to Rs 28.645 million (overdue plus financial charges) should be made to PSO immediately, failing which PSO will not be in a position to ensure uninterrupted supplies."
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