PD’s help sought for settlement of PPL receivables of Rs132.11bn against Genco-II

ISLAMABAD: Directorate General of Gas of the Petroleum Division (PD) has sought help from the division for the settlement of long outstanding receivables of Rs132.109 billion against the Central Power Generation Co Ltd (Genco-II), Guddu, to keep payment of government levies intact, avoid budgetary shortfall and negative audit observations.

Along with its request, the directorate general of gas also sent a letter to Pakistan Petroleum Limited (PPL) in which the company shared its viewpoint on the outstanding payment and its financial woes.

The PPL maintains that no serious action has been taken by Genco-II Guddu for settlement of the outstanding and overdue amount of Rs74.451 billion against gas sales invoices and Rs12.275 billion against ‘take or pay’ as on January 31, 2023.

According to the gas company, a substantial amount of PPL gas billing to Genco-II comprises government levies, mainly the Gas Development Surcharge (GDS) and Gas Infrastructure Development Cess (GIDC), which are payable to the government on collection from customers.

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However, after an order of the Supreme Court, GIDC is payable to the government on monthly basis without fail. Therefore, it is essential that dues from Genco-II are timely received by PPL for onward payment to the government treasury against levies. Finance Ministry and the commercial audit department have also been pressing PPL for payment of GDS and GIDC.

Furthermore, Genco-II, in contravention of its gas sales agreement with the PPL, has failed to settle the Late Payment Surcharge (LPS) of Rs45.383 billion pertaining to the period from July 2001 to December 2022. The gas company has further stated that it has time and again pointed out that Genco-II will be liable to pay such LPS consequent to delayed settlement of PPL’s gas bills, as non-payment

of bills is a financial loss to it.

Keeping in view the existing position of the company, the PPL’s managing director has urged the chief financial officer of the Genco-II, Guddu, to immediately settle overdue amount of Rs132.109 billion.

Copyright Business Recorder, 2023