Circular debt decreased to Rs12-14b per month
ISLAMABAD: The Senate Standing Committee on Power Division has been apprised that the circular debt had been decreased to Rs 12-14 billion from Rs 34 billion per month.
The committee which met with Fida Muhammad in the chair was briefed regarding budgetary allocations and its utilization by Ministry of Energy (Power Division).
Outstanding dues on account of energy purchase price and indexation of 81 MW Malakand-III HPS and 18 MW Pehur HPS and non-provision of electricity connections to the newly established industrial units in Dargai Industrial Estate were discussed as well.
The Committee was told that an amount of Rs 802 billion of the Circular Debt was with Power Holding Companies. Owing to timely measures, Rs 134 billion was added to circular debt in the current fiscal year. If steps were not taken, it could increase to Rs 300 billion.
Taking up the issue of budgetary allocation and utilization, the Committee was informed that budget for the current fiscal year for development projects was Rs 75 billion. Rs 226 billion was also allocated for power subsidy.
The Committee directed that there must be uniformity in tariff rates and an in-built mechanism.
The Committee was also informed that measures taken by Peshawar Electric Supply Company (PESCO) have curbed the Kunda Culture while Gwadar Electricity Projects have been delayed for 3 months due to the Corona Virus.
Taking up the matter of outstanding dues on account of energy purchase price and indexation of 81 MW Malakand-III HPS and 18 MW Pehur HPS, the Committee stressed the need for PEDO payments to be at par with other parts of the country.
Levelised cost of energy must be calculated and presented to the Committee in the next meeting.
Regarding non-provision of electricity connections to the newly established industrial units in Gadoon Amazai Industrial Area, the Committee was told that a network was being established to improve the situation due to which domestic consumers had to face load shedding for 8 hrs on a regular basis.
The Committee was assured that this work would be completed by summer and that there would be no complaints in the future. The Committee took strong notice of electricity cuts in residential areas on Sundays.
Discussing the Thar Coal Project, in Sindh the Committee was informed that permission from EPA Sindh on environmental impact was imperative to commencement of all projects.