Recovery of Rs170.237bn from power sector: SNGPL seeks Petroleum Division’s support

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has sought the Petroleum Division’s support for recovery of Rs 170.237 billion from the power sector, whose circular debt has already crossed Rs 2.6 trillion during the first four months of current fiscal year.

“A huge amount of Rs 170.237 billion has piled up against power sector due to non-payment of outstanding dues by Wapda and Central Power Purchasing Agency –Guaranteed (CPPA-G),” said Chief Financial Officer SNGPL, Faisal Iqbal in a letter to Director General (Gas) Petroleum Division.

Out of Rs 170.3237 billion, receivables against Guddu Power stood at Rs32.466 billion, NandipurRs14.002 billion, TPS Muzaffargarh Rs 1.242 billion, GTPS Faisalabad 1.90 billion, GTPS Shahdra Rs 175 million, SPS Faisalabad Rs 92 million, NGPS Multan Rs 56 million, Rented Power Bhikki Rs116 million and Rented Power Sharqpur Rs 161 million, totaling to Rs49.900 billion.

SNGPL seeks 137pc increase in prescribed gas price

According to SNGPL, undisputed amount is Rs 69.052 billion. Disputed gas charges comprise Rs 34.478 billion, Late Payment Surcharge on gas charges is Rs64.639 billion, totaling to Rs168.168 billion. After addition of Rs 2.069 billion on account of GIDC including LPS, total receivables stand at Rs 170.237 billion.

Total undisputed amount is Rs 14.56 billion of which Rs 12 million is against Kapco, Rs 200 million Engro Energy and Rs 14.351 billion Liberty Power. However, total outstanding principal and interest amount against Kapco, Engro Energy and Liberty Power, Orient Power, FKPCL, Sapphire Power, Saif Power, Davis Energen and Halmore stood at Rs 24.33 billion.

Chief Financial Officer of SNGPL maintained that Rs 277 million is outstanding against disconnected Wapda rented power units, i.e., Bhikki and Sharqpur and Rs 77 million is outstanding against disconnected IPP-Davis Energen. “The current situation is detrimental for sustainability of the company and may jeopardise the overall financial structure of the company,” he stated.

The SNGPL is facing grievous liquidity crisis and due to delayed release of funds by power sector and is now unable to discharge its commitments that include payments to upstream gas suppliers,“ he added.

Keeping the severity of the issue in mind, SNGPL has requested Petroleum Division to take up the matter with Power Division for early release of funds to WAPDA, IPPs and GPPs (Government Power Plants) enabling them to discharge their respective liabilities towards SNGPL so that the company can honour its commitments to gas suppliers, he concluded.

Copyright Business Recorder, 2023