Hub Power Company issued notice of default to Wapda in respect of under payment of capacity purchase price for September, which would lead to another preliminary termination notice if the authorities do not cure the breach.
Hubco has claimed that it is owed a total of approximately $200 million from WAPDA. Power capacity purchase price payments since June 1998 have been a major cause for these receivables. Hubco is currently receiving an average of Rs 730 million per month, compared to the average billing figure of Rs 1150 million per month. These compare with the figure of Rs 845 million per month which the courts have decided should be paid by WAPDA.
This notice of default is the 12th such notice that has been issued since December 1998. In the event that the breach is not remedied within 30 days, then Hubco may give WAPDA a notice of intended termination. Hubco has previously issued 10 such notices to WAPDA.
