Power sector arrears: Upstream supplies at risk as recoveries surge to Rs169.27bn: SNGPL

Sui Northern Gas Pipelines Limited (SNGPL) says power-sector customers owe it Rs169.27 billion, and the unpaid bills are putting pressure on its liquidity and its ability to pay upstream gas suppliers. Business Recorder reported that the company has asked the Central Power Purchasing Agency-Guarantee and the Petroleum Division to help secure settlement.

Gas-based power plants account for Rs67.268 billion of the total, WAPDA power plants Rs63.548 billion and independent power producers Rs38.454 billion. Among the named IPPs, KAPCO owes Rs5.085 billion and Saif Power Rs2.353 billion; SNGPL also warned that continued funding constraints could expose Pakistan State Oil and Pakistan LNG Limited to a possible international default on RLNG supplies.

SNGPL has urged power-sector entities to clear overdue bills, saying it could use contractual recovery rights if payments remain unpaid. The company attributes the accumulated dues to insufficient fund releases by CPPA-G or non-payment by individual power plants.