Minister for Water and Power Syed Naveed Qamar on Wednesday gave final warning to incumbent chief executives of nine public sector distribution companies (DISCOs) to improve recoveries from defaulters in next 30 days or be prepared to leave their posts.
Minister shocked: An official source said the minister issued this warning while presiding over a meeting to review the recovery of DISCOs during the first two months of the current fiscal year. He said the minister was shocked to know that the amount of running default increased by Rs6 billion to over Rs80 billion during the first two months of the current fiscal year.
According to the source, DISCOs tried to hide inefficiencies under line losses, but the minister disagreed with their argument and said the increase in running default was only possible due to non-recovery. He said DISCOs have failed to cut power supply of running defaulters, which is why receivables have increased. He warned that the incompetent and inefficient officials of the DISCOs would be replaced. He gave 30 days deadline to all DISCOs, except HESCO and SEPCO, which have been given 45 days due to floods to improve recoveries.
Power sector reforms: The Planning Commission has already advertised for the posts of CEOs and CFOs of DISCOs in the national press. The ministry of water and power has been opposing the move and had sought more time for the incumbent managements for delivery with the argument that non-recovery of dues for the government departments and influential private sector was hampering recovery of the DISCOs. However, the ministry of finance and planning commission have concluded that power sector reforms can not move forward without replacement of the present management.
A statement issued by the ministry of water and power said the minister, while taking serious notice of less recovery from running defaulters during last two months, asked DISCOs to start an effective campaign against and recover the complete amount. He said action will be taken against the CEO of the respective company that fails to recover electricity dues from running defaulters within 60 days as well as SE, XEN and SDO after 30 days. He directed them to give targets to SEs, Xen’s and SDO’s to ensure recovery. Field officers will be evaluated on the results of targets achieved by them during last three months for further promotion.
Stern action: The minister directed them to take severe action against power theft and reduce line losses. He directed DISCOs to disconnect the supply of consumers without any discrimination in case of non-payment of bills after 60 days. However, he warned that there should be no complaints of inflated bills by consumers and officials involved should be taken to task. Complaints of low voltage and short circuiting must be addressed immediately. He also said the government has planned to appoint CEOs of DISCOS from private sector to improve efficiency.
