Power consumers pay Rs19.2b in head of debt servicing
Believe it or not, the electricity end consumers have so far paid huge amount of Rs19.2 billion in the first seven month of the ongoing financial year 2017-18 in the head of debt servicing of the mammoth loan of Rs400 billion that power sector borrowed and has been parked in Power Holding Private Limited (PHPL).
And if the loans parked in PHPL are added to the amount of Rs542.9 billion that the government is needed to pay to other entities, then the monster of circular debt of the power sector stands at Rs943 billion. The latest briefing dated February 27, 2018 on performance review of the electricity power distribution companies (DISCOs) of which the copy is also available with The News divulges that that power sector is needed to pay Rs343.2 billion to Independent Power Producers (IPPs). In 2013 the arrears of IPPs were at Rs74.9 billion which has now swelled to staggering Rs343.2 billion.
Published in The News, 4th March, 2018