Crisis in power sector: Nothing done for financial stability, T&D network: Ex-MD Pepco
ISLAMABAD: Failure to adopt a holistic approach to effectively deal with the power crisis by focusing only on generation while ignoring the sector’s financial stability or improving the transmission and distribution system is the major reason behind the continuing crisis in the sector.
This was stated in Aaj TV Programme “Paisa Bolta Hai”’ with Anjum Ibrahim, by former Managing Director (MD) Pakistan Electric Power Company (Pepco) Tahir Basharat Cheema.
Cheema added that the PML-N administration’s entire focus was on generation and little if anything was done to improve the transmission and distribution network or to make the sector financially sustainable.
He clarified that the sustainability of the power sector continues to be at risk and this is revealed by the fact that power sector receivables have increased from Rs 423 billon in 2013 to Rs 870 billion at present despite increase in average tariff from Rs 7.50 per unit to Rs 14 per unit. Unfortunately the government is passing on sector losses as well as debt servicing cost to consumers.
Published in Business Recorder, 24th June, 2018