Centre, Punjab owe Mepco over Rs16bn

ZAHEER ABBASI

ISLAMABAD: Federal and Punjab governments are the two major defaulters of Multan Electric Power Company (Mepco) whose receivables of the company increased from Rs13.281 billion to Rs16.233 billion during four months of the current fiscal year.

Official documents available with Business Recorder show that the receivables of federal and Punjab governments increased from Rs1.380 billion on July 1, 2011 to Rs2.143 billion on Nov 1, 2011, with receivables of federal government escalating from Rs.170 million to Rs.176 million and provincial government's from Rs1.210 billion to Rs1.967 billion.

The receivables of Mepco's running defaulters increased from Rs1.035 billion in July 1, 2011 to Rs2.123 billion on Nov 1, 2011.

The receivables of running defaulters of the company up to 3 months increased from Rs64 million to Rs164 million, up to three to six months from Rs47 million to Rs184 million on Nov 1, 2011.

The running defaulters of private sector increased from Rs1.159 billion from July 1, 2011 to Rs2.470 billion on Nov 1, 2011 which increased the net private sector receivable from Rs11 billion to Rs14 billion during the first five months of the current fiscal year.

The rate of recovery from the federal government in November remained 93.93 percent and from provincial government 48.64 percent. Mepco's total outstanding against Punjab were Rs1.782 billion during July-November 2011 and collection only Rs974 million.

Against the Rs914 billing, the federal government paid Rs908 million for the same period. Gap in billing and collection against federal government considerably increased in November 2011.

The company reportedly assured the Planning Commission that it was making efforts to recover Rs8.7 billion 'System Usage Charges' from other companies. The company is also taking up the issue with Central Power Procurement Authority (CPPA) to withdraw unjustified charging of Rs6.7 Billion.

Efforts were also being made to recover due amount from permanently disconnected customers by involving "trust bank" and incentive to employees and public.

The management of the company complained that the Ministry's representative on its Board was not attending the Board meetings. The company also urged the federal government to stop political interference in company affairs, especially in transfers and induction.