Unpaid power bills

Published November 23, 2011

IF individual consumers consistently fail to pay their bills, their electricity is sooner or later cut off by the relevant power utility. Government departments, it seems, have more leeway in this regard. There is food for thought here, especially after the minister for water and power told the National Assembly on Monday that several government departments — both civilian and military — owe hundreds of millions of rupees in unpaid electricity bills. He added that this had affected the country’s power generation capacity. The Azad Jammu and Kashmir government leads with over Rs10bn outstanding, while Pakistan Railways, the Rangers, various departments of the armed forces, the Senate, the Supreme Court, ISI and several federal ministries are also on the list. Such financial indiscipline is one of the major factors behind the monster known as circular debt. The problem occurs when government departments consume more than what their budgetary allocation for power bills allows them to. When this happens on a regular basis the unpaid amount starts ballooning.

There is little doubt that if these entities were to strive to work within their budgetary allocations and manage their power supply judiciously, as well as pay their bills on time, generation would improve overall, while the circular debt issue could also move towards settlement. The question is whether these departments have what it takes to enforce the needed discipline in their ranks. Unfortunately, their attitude is part of a nationwide malaise that does not bode well for the future of energy in the country. Neither the public nor the state has shown any sustained interest in conserving power. Both can be accused of using electricity in a wasteful manner. However, the onus is on the government, which regularly raises power tariffs, to show the way and desist from its profligate use of electricity.

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