ISLAMABAD, July 22: The Karachi Electric Supply Corporation (KESC) owes more than Rs39 billion to the Pakistan Electric Power Company (Pepco) on account of unpaid electricity bills.

Sources told Dawn on Tuesday that Pepco’s total receivables had gone beyond Rs140 billion and it was facing problems in its day-to-day financial matters.

Fuel suppliers and private power producers have put Pepco on notice to clear the bills or face contractual penalties and supply disruptions.

A meeting presided over by Minister for Water and Power Raja Pervez Ashraf noted that the KESC management had not been able to meet its commitments made over the past three months.

The meeting constituted a committee to recommend measures for enhancing KESC’s power generation, clearing dues and improving its system.

The deputy chairman of the Planning Commission, secretary of the ministry of water and power, acting secretary for petroleum, chairmen of Nepra and Wapda, managing directors of Pepco and the Private Power and Infrastructure Board, additional secretary for finance and KESC’s chief executive attended the meeting.

The committee will suggest interim and long-term measures to overcome the power crisis in Karachi, improve KESC’s distribution system, ensure payment of outstanding dues to Pepco and enhance power generation to meet future requirements. The committee comprises chairmen of Wapda and Nepra, chief secretary of Sindh and the additional secretary for finance. It will submit its recommendations within seven days.

According to an official statement, the minister said the government was facing severe criticism because of power shortage and poor distribution system of the KESC, which had caused immense hardship to the people.

The KESC management, he said, had not fulfilled commitments made during the past three months, because of which the people of Karachi were suffering.

He asked the KESC management to make more investment to improve its performance and provide smooth power supply and take time-bound measures to address the situation. He said Karachi was the country’s business hub and the government could not afford to let it suffer from power shortage. Therefore, the KESC should avoid loadshedding, trippings and shutdowns.

He assured the KESC management that the government would provide maximum support to help it enhance its generation capacity.

He stressed the need for taking energy conservation measures.

The KESC chief executive said measures were being taken to improve the system and the duration of scheduled loadshedding had been reduced to two hours.

He said 80MW would be added to the system from the newly established Korangi Power Station after the completion of a gas pipeline within a month. Arrangements are being made for early commissioning of another 140MW from the same power station.

Agreements were also being signed for 560MW power plants and several rental power projects, upgrading the distribution system and replacing overloaded transformers for smooth supply, he said.