23:22
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KARACHI: The Independent Power Producers (IPPs) approaching the Supreme Court early this year over non payment of dues and deduction of capacity charges are still running from pillar to post but the National Transmission and Dispatch Company (NTDC) is unmoved and clearly violating Supreme Court orders.
A meeting held on Friday was attended by senior officials of NTDC and CEOs and CFOs of all the IPPs in petition. But the NTDC did not put forward any proposal, rather asked the IPPs to consider all options available to them under the law, sources said. Earlier the council for NTDC had submitted in the Supreme Court that the issue of reduced capacity payments and deductions would be resolved mutually in accordance with the Power Purchase Agreement by or before November 30, 2012.
According to sources, the previous outstanding have been partly paid while the government has yet to start reconciliation of accounts for power supplies made after July 14, 2012.
Sources conceded that in view of the financial constraints of the federal government they agreed before the superior court to defer payment of Rs21 billion of the previous outstanding dues of Rs45 billion which would now be received in monthly installments from November 21, 2012.
However, they regret that the dues against power supplied after July 14, 2012 are increasing with every passing day. Another matter disturbing the eight IPPs is the arbitrary reduction in capacity payments and deductions on various counts. The court has ordered the state to settle this issue with the IPPs in line with the Power Purchase Agreement.
Industry insiders say that IPPs are suffering due to the incompetence of the state-controlled power sector. They point out that the power distribution companies have failed to recover dues worth over Rs390 billion out of which more than 50 percent are outstanding against private sector consumers.
They wonder what is stopping the companies from disconnecting the power supply of these consumers and proceeding against them for recovery of dues. As far as the government sector payments are concerned, they said these could be recovered by the federal government from the payments it makes to the provinces and budgetary amount allocated for central government departments.
Even after a huge tariff increase circular debt is still increasing. They said a competent management could bring down the distribution losses from current 18 percent to four to six percent which would reduce the cost of power production.
Transmission losses have been brought down from 10 to three percent and this could be achieved in distribution losses if the government mustered the will to nab power thieves, they said. Recovery of power dues and elimination of power theft would eliminate circular debt within six months, they said.
A meeting held on Friday was attended by senior officials of NTDC and CEOs and CFOs of all the IPPs in petition. But the NTDC did not put forward any proposal, rather asked the IPPs to consider all options available to them under the law, sources said. Earlier the council for NTDC had submitted in the Supreme Court that the issue of reduced capacity payments and deductions would be resolved mutually in accordance with the Power Purchase Agreement by or before November 30, 2012.
According to sources, the previous outstanding have been partly paid while the government has yet to start reconciliation of accounts for power supplies made after July 14, 2012.
Sources conceded that in view of the financial constraints of the federal government they agreed before the superior court to defer payment of Rs21 billion of the previous outstanding dues of Rs45 billion which would now be received in monthly installments from November 21, 2012.
However, they regret that the dues against power supplied after July 14, 2012 are increasing with every passing day. Another matter disturbing the eight IPPs is the arbitrary reduction in capacity payments and deductions on various counts. The court has ordered the state to settle this issue with the IPPs in line with the Power Purchase Agreement.
Industry insiders say that IPPs are suffering due to the incompetence of the state-controlled power sector. They point out that the power distribution companies have failed to recover dues worth over Rs390 billion out of which more than 50 percent are outstanding against private sector consumers.
They wonder what is stopping the companies from disconnecting the power supply of these consumers and proceeding against them for recovery of dues. As far as the government sector payments are concerned, they said these could be recovered by the federal government from the payments it makes to the provinces and budgetary amount allocated for central government departments.
Even after a huge tariff increase circular debt is still increasing. They said a competent management could bring down the distribution losses from current 18 percent to four to six percent which would reduce the cost of power production.
Transmission losses have been brought down from 10 to three percent and this could be achieved in distribution losses if the government mustered the will to nab power thieves, they said. Recovery of power dues and elimination of power theft would eliminate circular debt within six months, they said.
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