PESHAWAR, June 2: A major portion of the Peshawar Electric Supply Company’s (Pesco) financial losses, which currently stand at Rs7 billion, are because of non-payment of power bills in the Shabqadar area, where consumers owe the company Rs4.5 billion.

According to a press release issued by Pesco here on Friday, the consumers in the area refused to clear their dues besides refusing to regularise their power connections.

The press release said that an agreement had been signed in 2003, under which Pesco promised to provide electricity to consumers in the Shabqadar area for 18 hours in return for clearing their outstanding dues and installing power meters.

Pesco, it said, had approached local elders and elected representatives after people did not honour their commitment requesting them to motivate people to abide by the agreement. Subsequently, the power utility disconnected stopped power supply to the area in December 2005, which was later restored on the assurance of the local elders.

The power was again cut off in March 2006 because of the consumers’ non-compliance with the agreement and the company decided not to restore it until outstanding dues were cleared.

However, the press release said, “keeping in view the daily requirements, Pesco is providing electricity for three hours a day on humanitarian grounds to people living in the area”.—APP