Electricity Bill Collection Increased by Rs. 121 Billion: Report

Electricity bill collection for the current government’s tenure has increased by Rs. 121 billion. Note that this is from October 2018 to June 2019.

Distribution companies were asked to recover at least Rs. 8 billion from previous receivables. However, the companies recorded an increase of Rs. 121.1 billion in collections from October 2018 to June 2019.

According to a performance report by the Power Division, the transmission and distribution losses (T&D) dropped by 1.4%, having a positive financial impact of Rs. 160 billion during the nine-month period.

The power sector has undertaken a number of initiatives for reforms in recent months, other than becoming self-sufficient. This includes both administrative and technical measures pertaining to system augmentation and upgrade.

The power division also launched an anti electricity theft campaign back on October 13, 2018, with the slogan of zero tolerance for overbilling and corruption. So far, 36,000 FIRs have been registered, 5,318 people arrested and Rs. 1.37 billion has been recovered under the drive.

A project titled Advanced Metering Infrastructure is being launched in areas covered by Lahore and Islamabad electric supply companies at a cost of $400 million, with assistance from the Asian Development Bank.

Peshawar and Sukkur electric supply companies have started installing special cables for their anti-theft campaign and efforts to remove illegal connections.

Circular Debt

According to the performance report, the monthly growth of circular debt shrank from Rs. 38 billion to Rs. 26 billion by June 2019.

Efforts are underway to push it down to Rs. 8 billion per month by June 2020 while by December 2020 the growth will be brought to zero.

Public Complaints

In order to address consumer grievances on the spot, power distribution companies regularly hold open hearings every Saturday at the sub-divisional level.

According to the report, a total of 118,183 complaints were received by the Power Division from the Prime Minister Delivery Unit, with 105,766 complaints resolved.

Removal of Hazards

Significant achievements were made in trying to remove hazards from residential areas. The distribution companies succeeded in removing 12,733 such hazards out of 30,954 hazards identified across the country, the report said.

A dedicated portal has also been launched for the safety of employees.

Renewable energy policy

The Power Division has drafted a new Renewable Energy Policy 2019 and has sent it to all stakeholders for their input.

There are proposals for increasing the share of renewable energy in the overall energy mix to 20% by 2025 and to 30% by 2030. A record 23,049 megawatts of electricity was transmitted through the system last month.

  • Kindly note that the price of electricity has been increased by 30% as well, contributing to the increased collection by electricity companies

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