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Power sector recovery deficit rises to 35 percent

The deficit in the recovery of dues in Pakistan’s power sector has alarmingly increased to 35 percent in the last financial year 2011-12 (FY12) from 14 percent in the previous year, according to official data of the government on the power sector.

This reflects that all the electric power distribution companies failed to collect revenue amounting to Rs 337.628 billion.

According to the data, all electricity power distribution companies, including Karachi Electric Supply Company (KESC), purchased electricity worth Rs 957.451 billion from Central Power Purchase Agency (CPPA) in FY12 but collected just Rs 619.823 billion in return.

The recovery of dues by Sukkar Electric supply Company has been the lowest one at 21 percent showing a shortfall of Rs 38.221 billion. In addition, the recovery in other loss making companies such as Quetta Electric Supply Company (Qesco) remained at 36 percent with deficit of Rs 36 billion, in Hyderabad Electric Supply Company (Hesco) the recovery stood at 49 percent showing a shortfall of Rs 26.3 billion and in Peshawar Electric Supply Company (Pesco) recovery remained at 47 percent with loss of Rs 76 billion.

However, the recovery rate in Punjab’s five distribution companies has been in the range of 70 to 80 percent. The Lahore Electric Supply Company did a marvelous job as it’s recovery of dues was the highest at 80 percent, showing a deficit of Rs 38.151 billion.

Likewise, the recovery rate in Gujranwala Electric Power Company (Gepco) stood at 79 percent with loss of Rs 16 billion, Faisalabad Electric Supply Company (Fesco) 74 percent showing deficit of Rs 28 billion, Islamabad Electric Supply Company (Iesco) 70 percent with loss of Rs 27 billion and in Multan Electric Power Company (Mepco) recovery stood at 72 percent showing deficit of Rs9 billion and in KESC, the recovery of dues was 77 percent with loss of Rs 14 billion.

The data also shows that all the distribution companies braved colossal loss of Rs 114.194 billion in 2011-12 because of excessive loss and low recovery. Under this head, Lesco sustained loss of Rs 8.7 billion, Gepco of Rs 1.506 billion, Pesco of Rs 1.439 billion, Iesco of Rs 3.133 billion, Mepco of Rs 6.6 billion, Hesco of Rs 12.912 billion, Sepco of Rs 20.939 billion, Qesco of Rs 23.448 billion and Pesco and Tesco of Rs 35.507 billion each.

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