ISLAMABAD: Water and Power Development Authority (WAPDA) Chairman Zafar Mehmood tendered resignation from his post on Monday.
He cited personal issues as the reason behind his resignation. Earlier, the Pakistan Electric Power Company (Pepco), which is an umbrella organisation of all the public-sector power companies, presented the ‘Financial Review 2015-16’ to the prime minister office and the Ministry of Water and Power.
According to the report, Pakistan’s power sector receivables have crossed the Rs684 billion-mark, the highest they have ever been, despite a drastic 27 per cent cut in generation costs. On top of that, the amount of the power sector’s payables also surged 44 per cent to Rs 300 billion on June 30, 2016, up from Rs207 billion three years ago.
This rise comes despite the Rs 480 billion paid by the government to power producers and fuel suppliers. The receivables included amounts outstanding against power sector consumers and recoverable by the distribution companies, while their payables are amounts owed to independent power producers (IPPs), fuel suppliers and the Water and Power Development Authority.
On the positive side, Pepco reported an improvement in the recovery rate to 94.4 per cent for billed amounts of FY2015-16, compared with 89.2 per cent recovery in the same period last year. It also reported a decline in overall system losses from 18.7 per cent last year to 17.9 per cent in June this year.
The power sector has to pay Rs 173 billion to independent power providers (IPPs), Rs 76 billion to oil companies, Rs 19 billion to banks in debt servicing costs and Rs 32 billion to various generation and transmission companies as of June 30, 2016.
