The stock of power sector receivables on account of agri-tubewells in Balochistan has reached Rs 530 billion as neither the agri-tubewells are paying their due share nor the provincial government, well informed sources and media reports said.
Sharing the details, sources said, in the light of agreement signed between Government of Pakistan (GoP) and Government of Balochistan (GoB), the process of solarization of agriculture tube wells in Balochistan has been initiated but the agriculture consumers are not paying their legitimate share of Rs 10,000/- per month as well as amount over and above Rs 75,000, since long, resultantly receivables have reached Rs 530 billion against them.
As per Consumer Service Manual regulated and endorsed by NEPRA, disconnection of defaulters is allowed to the companies in order to recover dues and avoid further accumulation of arrears.
In this regard Quetta Electric Supply Company (Qesco) has taken a lenient action by decreasing the supply hours of the agriculture consumers; however it has not disconnected the agriculture connections in accordance with the agreement made between Government of Pakistan (GoP) and Government of Balochistan (GoB) on solarization of agricultural tubewells.
Moreover, soon after the implementation of solarization of agritubewells, subsidies have not been paid by GoB as per their share since July 2024, whereas in the agreement on solarization, it is clearly mentioned that the earlier agreement will be terminated after completion of solarization process, which is still going on.
According to sources, prior to this, additional agreed grant of Rs 8 billion each was to be paid by GoP & GoB on account of three hours’ extra supply to agriculture consumers in various periods is also outstanding.
Qesco, one of the worst performing Discos, has requested the federal government to take up the matter in Cabinet for approval of continuation of payment of subsides as per the existing formula both by GoP and GoB till completion of solarization process.
The Disco has also asked Power Division to take up the matter with GoB for early payment of outstanding subsidies as per 60 percent agri subsidy share amounting to Rs 56 billion as on October 2024, as well as release their committed grant amounting to Rs 8 billion on account of three hours’ extra power supply on priority basis as the Company is facing acute financial crises since long and is finding it difficult to run the affairs of business smoothly.