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LAHORE, May, 16: Wapda’s receivables have gone up to Rs 54.626 billion — Rs34.201 billion from public sector and Rs20.425 billion from private sector — during the first nine months of the current fiscal year.
At the start of the 2001-2002 fiscal, the receivables stood at Rs 43.885 billion — Rs 27.339 billion from public sector and Rs 16.546 billion from private. Which means a new cumulation of Rs 10.74 billion during first three quarters of the current year.
According to the break-up of the receivables, federal departments and agencies owe Wapda Rs1.947 billion, army Rs1.714 billion, AJK government and GOP Rs1.171 billion, FATA Rs12.029 billion and Balochistan Rs2.454 billion.
The Karachi Electric Supply Company (KESC) maintains its record of being the top defaulter of Rs 11.576 billion — an addition of Rs 1.180 billion during the current year. Provincial departments and agencies also owe Wapda Rs 3.510 billion.
TARIFF INCREASE: Meanwhile, commenting on a recent combined tariff increase of 12.5 paisa, a former member finance said: “The increase has never helped Wapda in the past.”
Problem with Wapda, according to him, is its ever-decreasing collection. During the first nine months its collection from the public sector stands at 91 per cent and 98 per cent from private sector. This difference of 11 per cent collection is bound to increase backlog of receivables. Other system inefficiencies are in addition to that.
Periodic tariff increases do bring temporary relief to financial health but cumulating receivables soon catch up to neutralize the impact. “This is a vicious circle,” he pointed out.
Wapda was given four increases — around 32 paisa per unit — during the last one year. But its deficit, he said, had risen from Rs 12 billion last year to Rs 26 billion this year. The present increase, designed to off set this Rs 26 billion deficit, would not be able to ward off Rs 46 billion shortfall next year, he feared.
“The most tragic part of these periodic reliefs is that they only postpone the much-required system improvement that can make the authority self-sustainable,” claims a former member power.
The authority, according to him, had been seeking symptomatic cure, and the Nepra obliged it every time.
He said though the Nepra had, on certain occasions, pointed out some system deficiencies but it had largely submitted to the Wapda demands for tariff revision. “The Nepra is caught up in a self-defeating exercise when it allows temporary relief to Wapda on the fuel adjustment excuse,” he lamented, adding: “The Nepra must realise that fuel bill of Wapda only went up from Rs 30 to 39 billion during last three years, whereas its other expenditures have leapfrogged its income many times. The Nepra must decipher these realities before granting a blind increase to Wapda.”
A consumer said the present increase showed insensitivity of the government. “It withheld 4.5 paisa increase notification because of referendum. Once that political exercise was over, the government burdened the common man with unbearable energy bill.”
