PSO defaulters causing loadshedding

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PSO defaulters causing loadshedding

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Default by PEPCO and power companies in oil purchase deals is causing loadshedding.

03 October,2011 10:55 pm

Power companies owe at least 122 billion rupees to Pakistan State Oil. According to the Finance Ministry, Hub Power Company stands as the biggest defaulter of the Pakistan State Oil with 64.42 billion outstanding dues. Kot Addu Power Company owes PSO 32.11 billion rupees while Karachi Electric Supply Company owes 4.33 billion rupees. WAPDA has to pay 21.33 billion rupees to PSO.PEPCO authorities in Lahore told Dunya News that 61 per cent of the total electricity is being produced by oil. The two big defaulting power houses are producing only 750MW against cumulative capacity of 2700MW.The PSO on the other hand complains that it owes 70 billion rupees to old refineries. It said that it needed new letter of credit in order to purchase more oil. The PSO says if it doesn’t have oil, how it could supply 32,000 tons of oil per day to 40 thermal power houses in the country to end loadshedding.