Increase font size Decrease font size Reset font size

Govt departments still owe Rs38 billion to Iesco

By Kalbe Ali 2015-06-30
ISLAMABAD : Though the Islamabad Electric Supply Company (Iesco) has made more than 100 per cent recoveries from the private consumers, the government departments still owe more than Rs38 billion to the company.

The top management of Iesco told the National Assembly committee on Monday that Iesco had made 101 per cent recovery from the private consumers up to May 2015, and its line losses werewithin the allowed limits.

`Besides arrears of previous years, we have made more than 99 per cent recoveries this year, Mohammad Yousuf Awan, CEO Iesco, told the sub-committee of the NA Standing Committee on Water and Power.

The sub-committee was informed that the AJK government owes around Rs35 billion which are less likely to be cleared in near future.

`Both AJK and federal government have developed some serious and complicated dispute, the official of the ministry of water and power said.

`Besides refusing to accept high tariff, the AJK government has claim over Mangla dam royalty too, it`s a complicated case, he added.

Apart from the AJK government, the federal governmentand its departments have to clear around Rs3.3 billion Iesco bills.

The operation area of Iesco includes Rawalpindi division, Islamabad district and the AJK.

`CDA has recently cleared around Rs500 million bills but it still owes around Rs1.40 billion for the electricity supplied to Islamabad city and other federal government installations such as the Presidency, PM house and office, parliament, etc.,` said an official of Iesco talking to media af ter the meeting.

He said around 100 government offices had defaulted on Iesco bills-two cantonment boards of Rawalpindi owes Rs500 million to the company, PWD Rs25 million, the two main federal government hospitals of Islamabad around Rs20 million.`There as numerous departments who have to clear small dues like Rs2 million by the National Highway Authority (NHA),` the official added.

`Many bills are cleared as the financial year closes but most of them get stuck after minor objection from any quarter,` he added.

The Iesco official said around Rs138 million were outstanding against the Punjab government, but it released Rs57 million on Monday and promised to clear the rest soon.

`The Punjab government departments will release payments to Pakistan Electric Power Company (Pepco) by July 1 but it will be transferred to the distribution companies` accounts including Iesco in four to five working days,` the official added.

`But the problem is with thefederal government departments as they are slow in clearing their outstanding dues,` the Iesco official told mediapersons.

In his brief to the subcommittee, the CEO Iesco said that out of ten electricity distribution companies of the country, Iesco was the best performing entity with only 9.4 per cent line losses.

Line losses of Hyderabad Electric Supply Company stand at 30 per cent, Lahore Electric Supply Company 12 per cent and Faisalabad Electric Supply Company 10 per cent.

`One reason for minimum line losses is because Iesco mainly caters to urban areas,` chairman of the committee commented, which was acknowledged by the Iesco officials, who even said that most of the 18 transformers stolen in the year were in the Attock district.