ISLAMABAD: Pakistan State Oil (PSO) has sought Power Division’s intervention for recovery of Rs 30.8 billion from Hub Power Company (Hubco) pending since long, well informed sources told Business Recorder.
PSO, sources said, informed Power Division of Hubco’s longstanding amount in respect of Residual Fuel Oil (RFO) supplies made by it, and requested intervention to recover the amount.
According to PSO, as of February 26, 2024, the total outstanding amount of PSO against Hubco, including Late Payment Surcharge (LPS) reached an alarming level of Rs 30.8 billion of which principal amount is Rs 18.1 billion whereas LPS accumulated was Rs 12.7 billion.
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PSO’s Chief Financial Officer, Gulzar Khoja, further informed Power Division that these receivables are against RFO supplies made to Hubco on assurance that regular payments will be made to PSO from CPPA-G allocated funds. However, no such payments have been made by Hubco since January 25, 2023.
“We have undertaken numerous follow-ups with Hubco and CPPA-G to address this issue but regrettably, no progress has been made,” CFO said adding that as per discussion with CPPA-G there is no further amount due towards Hubco on account of fuel energy payment.
The country’s public sector oil supplier contended that this delay in payment has caused a financial burden that is adversely affecting its cash flow.
PSO requested Secretary Power to advise Hubco for early payment against principal amount of Rs 18.1 billion along with Late Payment Surcharge amount of Rs 12.7 billion on immediate basis enabling PSO to sustain energy supply chain in the country.
PSO’s overall major receivables stood at Rs 876.868 billion as of February 24, 2024, of which dues against power sector were Rs 187.583 billion. The amount of receivables against Gencos/ CPPA-G stood at Rs 152.268 billion, of which Rs 71.685 billion is overdue, LPS Rs 43.429 billion, and LPS to be billed, Rs 37.154 billion, Hubco, Rs 30.815 billion and Kapco Rs 4.5 billion.
PSO’s receivables against Sui Northern Gas Company Limited (SNGPL) exchange rate gain/loss (LNG) stood at Rs 595. 701 billion, whereas receivables from PIA and GoP were Rs 93.584 billion.
Copyright Business Recorder, 2024
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