Circular debt to be zero by December 2020: Omar Ayub
Last updated on: 24 May,2019 08:51 pm
60pc electricity is being produced from imported fuel due to flawed policies of the previous govt.
ISLAMABAD (Dunya News) – Minister for Power Omar Ayub Khan on Friday expressed the confidence that circular debt will be completely overcome by December next year.
Addressing a press conference in Islamabad on Friday, he said the energy sector will observe a remarkable difference soon. He said a system of automatic metering is being introduced in the country to bring efficiency in the power sector and to stop power pilferage.
The minister said all efforts have been made that there is no load-shedding during Sehr and Iftar across the country.
Omar Ayub Khan said work is being accelerated to enhance the renewable component in energy mix and by 2025 twenty percent energy produced in the country will be through alternative sources. He said this portion will increase to over 30 percent by 2030.
He said: "Campaign against elements involved in power theft has been progressing smoothly and over 4000 people have so far been arrested who were stealing electricity. He said a sum of three hundred billion rupees will be recovered from defaulters."
The minister went on to say that a sum of Rs91 billion has been recovered from public and private sector. He said 60 percent electricity is being produced from imported fuel due to flawed policies of the previous government.
“Credit did not go to Pakistan Muslim League (PML-N) government for ending power load-shedding in the country as the past government left behind unpaid circular debt of Rs650 billion,” he said and added the previous government did not enhance the power tariff despite NEPRA’s determination apparently for winning general elections and continued power supply to loss making feeders resulted piling up of Rs.200 billion dues.
He said currently, there was zero load-shedding on 8790 feeders during Sehar and Iftar and around 80 percent feeders have been completely cleared from power theft. Even 10 hour electricity was also being provided to consumers of Tribal Electric Supply Company (TESCO) by removing system constraints, he added.
He said some 3000 MW electricity was ensured through removing system constraints and controlling power theft, adding that additional Rs81 billion revenue was generated through recovery from private sector during October 2018 to April 2019.
He said the PTI led government took pragmatic steps for bringing reform in the energy sector. NEPRA had recommended Rs.3.80 per unit tariff hike but the government increased only Rs.1.27 per unit. No power tariff was raised for consumers using upto 300 units, he added. Similarly, small traders were also exempted from tariff hike, he added.