The federal and provincial governments have decided to go for the power defaulters in the face of growing menace of circular debt and directed Pakistan Electric Power Company (EPCO) to disconnect their electricity supply, it was reliably learnt.
Sources said that the issue of PEPCO's receivables' against provinces was discussed during the meeting of Provincial Finance Secretaries presided over by the Federal Finance Secretary with the later highlighting the ramification of non payment of electricity dues by the provinces. Sindh Finance secretary said to have proposed that the PEPCO may start disconnections of power supply to the defaulters.
Additional Finance Secretary, Punjab has not only seconded his proposal but was quoted as saying that Punjab government has already issued a policy framework, which clearly authorises PFPCO to disconnect defaulters' power supply except critical installations. He said that the PEPCO must exercise this option upon which, the Federal Finance Secretary reportedly directed the PEPCO to go for disconnection of defaulters mercilessly.
The meeting also decided that the PEPCO and concerned DISCOs would invariably bring the details of disconnections, restorations, reporting of theft cases noted and action taken against the concerned employees of PEPCO as well as the department in the next meeting All Provincial Finance Secretaries would issue necessary instructions to the DDOs to process the electricity bills on top priority. In this regard, a meeting of Provincial AGs would also be convened in Finance Division under the chairmanship of SSF.
However, on the issue of Balochistan province, the secretaries' level committee decided that a meeting of the Sub Committee constituted on the issue of PEPCO's receivable against the provinces would arrange a meeting of sub committee at Quetta to resolve the issue related to QESCO's dues. As regards to PEPCO's receivables against the Provinces, the meeting decided that the sub committee would continue its working for expeditious resolution of issues.
The meeting decided that to resolve the issues of PEPCO's dues amicably, PEPCO will provide a work plan for the installation of time of use (TOU) meters as it was decided in the meeting in November 2011. The meeting also decided that the issues relating to agriculture subsidy in the province would be resolved by Finance Division on priority basis.
Sources said that the Additional Secretary Finance Punjab said that the total PEPCO's dues against Punjab government were Rs 8.8 billion with Rs 3.76 billion of disputed claims. He said that the PEPCO accepted the adjustment of credit worth about Rs 1.7 billion and protested on at source adjustment of electricity duty (ED) by PEPCO, saying that PEPCO has no right to do so and withhold money.
On the other side, official said that the PEPCO revealed that provincial departments, WASAs and TMAs are not making the payment against electricity bills and wanted immediate payment against such bills by provincial government by making at source deduction from the share of these agencies.
Finance Secretary Khyber Pakhtoonkhwa informed the provincial government made advance payment to PESCO against the electricity bills subject to adjustment later on and was not having any problem. The provincial Finance secretary KPK said to have raised the issue of payment of net hydel profit instalments by PEPCO/ WAPDA as well as the issues of billing against faulty meters bills adjustment.
Finance Secretary Balochistan said Prime Minister Gilani during his visits to Balochistan had announced Rs 4 billion agriculture subsidy which was not provided by the federal government. Additionally, the meeting was informed that the recovery of the QESCO was very low against the billing of Rs 1.273 billion, QESCO received the payment of Rs 0.37 billion.